Bill Text: CA AB77 | 2011-2012 | Regular Session | Introduced
Bill Title: Governmental reorganization: tax functions.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2012-02-01 - Died pursuant to Art. IV, Sec. 10(c) of the Constitution. From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. [AB77 Detail]
Download: California-2011-AB77-Introduced.html
BILL NUMBER: AB 77 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Member Gorell
JANUARY 3, 2011
An act to add Section 15627 to, and to repeal Part 10 (commencing
with Section 15700) of Division 3 of Title 2 of, the Government Code,
and to add Section 20.5 to the Revenue and Taxation Code, relating
to governmental organization.
LEGISLATIVE COUNSEL'S DIGEST
AB 77, as introduced, Gorell. Governmental reorganization: tax
functions.
(1) Existing law provides for the establishment of the Franchise
Tax Board and prescribes its various powers and duties regarding the
administration of state personal income taxes and corporation
franchise and income taxes. The State Board of Equalization collects
and administers various taxes and fees imposed under specified
programs and serves as an arbiter for the resolution of tax disputes
involving the imposition of fees and taxes, including those taxes
administered by the Franchise Tax Board.
This bill would abolish the Franchise Tax Board, and would provide
for the transfer of its powers and duties to the State Board of
Equalization, effective January 1, 2013.
(2) Existing law imposes, on employers in this state, unemployment
insurance taxes that are administered by the Employment Development
Department. Existing law also imposes taxes on insurance companies
that are administered by the Department of Insurance.
This bill would also provide for the transfer of the tax
administrative functions performed by the Employment Development
Department and the Department of Insurance to the State Board of
Equalization, effective January 1, 2013.
(3) This bill would require the State Board of Equalization to
submit a report to the Governor and the Legislature, on or before
June 30, 2012, regarding the board's assumption of the duties of the
Franchise Tax Board and the assumption of the tax administration
functions of the Employment Development Department and the Department
of Insurance, as specified. This bill would also repeal this
reporting requirement on June 30, 2016.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 15627 is added to the Government Code, to read:
15627. (a) (1) The board is the successor to, and is vested with,
all of the duties, powers, purposes, responsibilities, and
jurisdiction of the Franchise Tax Board. However, the statutes and
laws under which the Franchise Tax Board existed and all laws
prescribing the duties, powers, purposes, responsibilities, and
jurisdiction of the Franchise Tax Board, together with all lawful
rules and regulations established thereunder, are expressly continued
in force.
(2) Any action to which the Franchise Tax Board is a party on and
before January 1, 2013, shall not be abated by operation of law and
shall continue in the name of the State Board of Equalization, which
shall be substituted for the Franchise Tax Board by the court in
which the action is pending. The substitution of parties will not
affect the rights of the parties to the action.
(3) "Franchise Tax Board" when used in any statute, law, rule, or
regulation now in force, or that may hereafter be enacted or adopted,
means the board.
(b) (1) The board is the successor to, and is vested with, all of
the duties, powers, purposes, responsibilities, and jurisdiction of
the tax administration functions currently performed by the
Employment Development Department and the Department of Insurance.
However, the statutes and laws under which the administrative tax
functions of the Employment Development Department and the Department
of Insurance exist and all laws prescribing the duties, powers,
purposes, responsibilities, and jurisdiction of the administrative
tax functions performed by the Employment Development Department and
the Department of Insurance, together with all lawful rules and
regulations established thereunder, are expressly continued in force.
(2) Any action regarding the administration of the tax functions
of the Employment Development Department to which the Employment
Development Department is a party on and before January 1, 2013,
shall not be abated by operation of law and shall continue in the
name of the State Board of Equalization, which shall be substituted
for the Employment Development Department by the court in which the
action is pending. The substitution of parties will not affect the
rights of the parties to the action.
(3) Any action regarding the administration of the tax functions
of the Department of Insurance to which the Department of Insurance
is a party on and before January 1, 2013, shall not be abated by
operation of law and shall continue in the name of the State Board of
Equalization, which shall be substituted for the Department of
Insurance by the court in which the action is pending. The
substitution of parties will not affect the rights of the parties to
the action.
SEC. 2. Part 10 (commencing with Section 15700) of Division 3 of
Title 2 of the Government Code is repealed.
SEC. 3. Section 20.5 is added to the Revenue and Taxation Code, to
read:
20.5. Any reference hereafter in this code to the "Franchise Tax
Board" shall be deemed a reference to the board.
SEC. 4. (a) The Executive Director of the State Board of
Equalization, with the approval of the board, shall organize its new
responsibilities, formerly those of the Franchise Tax Board, in any
manner as he or she deems necessary for the proper conduct of the
board's consolidated revenue collection, administration, and
enforcement functions.
(b) The Executive Director of the State Board of Equalization,
with the approval of the board, shall organize its new tax
administration responsibilities, formerly administered by the
Employment Development Department, in any manner as he or she deems
necessary for the proper conduct of the board's consolidated revenue
collection, administration, and enforcement functions.
(c) The Executive Director of the State Board of Equalization,
with the approval of the board, shall organize its new tax
administration responsibilities, formerly administered by the
Department of Insurance, in any manner as he or she deems necessary
for the proper conduct of the board's consolidated revenue
collection, administration, and enforcement functions.
SEC. 5. (a) The civil service staff of the Franchise Tax Board
shall be transferred to the State Board of Equalization in accordance
with Section 19050.9 of the Government Code.
(b) Any civil service staff of the Employment Development
Department, that as a result of this act is required to be
transferred to the State Board of Equalization, shall be transferred
in accordance with Section 19050.9 of the Government Code.
(c) Any civil service staff of the Department of Insurance, that
as a result of this act is required to be transferred to the State
Board of Equalization, shall be transferred in accordance with
Section 19050.9 of the Government Code.
SEC. 6. (a) It is the intent of the Legislature in enacting this
act to provide a governmental organization that ensures centralized,
effective, efficient, and impartial tax revenue collection,
administration, and enforcement for the State of California.
(b) In order to effectuate this purpose, it is the intent of the
Legislature to do the following:
(1) Consolidate the powers and duties of the Franchise Tax Board
into the State Board of Equalization, and thereby streamline the
functions previously performed by both of those agencies.
(2) Consolidate the powers and duties, with respect to the
administrative tax functions, of the Employment Development
Department and the Department of Insurance into the State Board of
Equalization, and thereby streamline the functions previously
performed by all of those agencies with the functions performed by
the State Board of Equalization.
(c) It is the intent of the Legislature that this consolidation
shall be carried out in the least disruptive manner so as to ensure
that tax collections are not adversely affected.
(d) It is the intent of the Legislature that the consolidation
shall progress as expeditiously as is feasible and economical.
SEC. 7. (a) On or before June 30, 2012, the State Board of
Equalization shall submit a report to the Governor and the
Legislature on the plan for, and the progress of, the board's
assumption of the duties of the Franchise Tax Board and the board's
assumption of the tax administration functions performed by the
Employment Development Department and the Department of Insurance.
The report shall include recommendations for legislation that would
be necessary to more effectively achieve the efficiencies and
purposes intended by this act and shall include, but not be limited
to, the following:
(1) (A) A strategic plan to facilitate the orderly assumption by
the board of all duties and responsibilities of the Franchise Tax
Board, including the identification of critical issues, including,
but not limited to, the consolidation of computer systems,
telecommunications, and office space.
(B) A strategic plan to facilitate the orderly assumption by the
board of all tax administration duties and responsibilities of the
Employment Development Department and the Department of Insurance,
including the identification of critical issues, including, but not
limited to, the consolidation of computer systems,
telecommunications, and office space.
(2) Identification of those functions performed by the Franchise
Tax Board and the tax administration functions performed by the
Employment Development Department and the Department of Insurance
that are readily conducive to consolidation or centralization into
the board, including, but not limited to, administrative functions,
document processing, remittance cashiering, public service,
collection, and physical equipment and facilities.
(3) Identification of administrative functions that, because of
statutory conflicts or inconsistent administrative processes of the
Franchise Tax Board and the State Board of Equalization, cannot be
readily consolidated into the board.
(4) Identification of administrative functions that, because of
statutory conflicts or inconsistent administrative processes of the
Employment Development Department and the State Board of
Equalization, cannot be readily consolidated into the board.
(5) Identification of administrative functions that, because of
statutory conflicts or inconsistent administrative processes of the
Department of Insurance and the State Board of Equalization, cannot
be readily consolidated into the board.
(b) (1) The report required to be submitted pursuant to
subdivision (a) shall be submitted in compliance with Section 9795 of
the Government Code.
(2) Pursuant to Section 10231.5 of the Government Code, this
section is repealed on June 30, 2016.
SEC. 8. (a) Any contract, lease, license, or any other agreement
to which the State Board of Equalization or the Franchise Tax Board
is a party shall not be void or voidable by reason of this act, but
shall continue in full force and effect, with the State Board of
Equalization assuming all of the rights, obligations, and duties of
the Franchise Tax Board. That assumption by the State Board of
Equalization shall not in any way affect the rights of the parties to
the contract, lease, license, or agreement.
(b) Any contract, lease, license, or any other agreement to which
the State Board of Equalization or the Employment Development
Department is a party shall not be void or voidable by reason of this
act, but shall continue in full force and effect, with the State
Board of Equalization assuming all of the rights, obligations, and
duties of the Employment Development Department. That assumption by
the State Board of Equalization shall not in any way affect the
rights of the parties to the contract, lease, license, or agreement.
(c) Any contract, lease, license, or any other agreement to which
the State Board of Equalization or the Department of Insurance is a
party shall not be void or voidable by reason of this act, but shall
continue in full force and effect, with the State Board of
Equalization assuming all of the rights, obligations, and duties of
the Department of Insurance. That assumption by the State Board of
Equalization shall not in any way affect the rights of the parties to
the contract, lease, license, or agreement.
SEC. 9. (a) On and after January 1, 2013, the unencumbered balance
of all money available for expenditure by the Franchise Tax Board in
carrying out any functions transferred to the State Board of
Equalization by this act shall be made available for the support and
maintenance of the State Board of Equalization. All books, documents,
records, and property of the Franchise Tax Board shall be
transferred to the board.
(b) On and after January 1, 2013, the unencumbered balance of all
money available for expenditure by the Employment Development
Department in carrying out any functions transferred to the State
Board of Equalization by this act shall be made available for the
support and maintenance of the State Board of Equalization. All
books, documents, records, and property of the Employment Development
Department, relative to the tax administrative functions of that
department, shall be transferred to the board.
(c) On and after January 1, 2013, the unencumbered balance of all
money available for expenditure by the Department of Insurance in
carrying out any functions transferred to the State Board of
Equalization by this act shall be made available for the support and
maintenance of the State Board of Equalization. All books, documents,
records, and property of the Department of Insurance, relative to
the tax administrative functions of that department, shall be
transferred to the board.
