Bill Text: CA SB1554 | 2011-2012 | Regular Session | Amended
Bill Title: Governmental reorganization: tax functions.
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2012-04-25 - Set, first hearing. Hearing canceled at the request of author. [SB1554 Detail]
Download: California-2011-SB1554-Amended.html
BILL NUMBER: SB 1554 AMENDED BILL TEXT AMENDED IN SENATE APRIL 18, 2012 INTRODUCED BYSenatorStricklandSenators Correa and Strickland FEBRUARY 24, 2012 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, to add Section 20.5 to the Revenue and Taxation Code, and to add Section 13000.1 to the Unemployment Insurance Code, relating to governmental organization. LEGISLATIVE COUNSEL'S DIGEST SB 1554, as amended,StricklandCorrea . 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, operative January 1, 2014. (2) Existing law requires the Employment Development Department to administer the reporting, collection, and enforcement of personal income tax wage withholding. This bill would instead require the State Board of Equalization to administer the reporting, collection, and enforcement of personal income tax wage withholding, operative January 1, 2014. 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, 2014, will 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 or the Director of Employment Development pursuant to Division 6 (commencing with Section 13000) of the Unemployment Insurance Code. However, the statutes and laws under which the administrative tax functions of the Employment Development Department or the Director of Employment Development relating to the withholding of tax on wages pursuant to Division 6 (commencing with Section 13000) of the Unemployment Insurance Code existed and all laws prescribing the duties, powers, purposes, responsibilities, and jurisdiction of the administrative tax functions performed by the Employment Development Department and the Director of Employment Development, 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 pursuant to Division 6 (commencing with Section 13000) of the Unemployment Insurance Code to which the Employment Development Department is a party on and before January 1, 2014, will 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. 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 in this code to the "Franchise Tax Board" shall be deemed a reference to the board. SEC. 4. Section 13000.1 is added to the Unemployment Insurance Code, to read: 13000.1. Any reference to the department or to the director with respect to the duties, powers, purposes, responsibilities, and jurisdiction of the department or director regarding the administrative tax functions relating to the withholding of tax on wages pursuant to Division 6 (commencing with Section 13000) shall be deemed a reference to the State Board of Equalization. SEC. 5. (a) The executive officer of the State Board of Equalization, with the approval of the members 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 officer of the State Board of Equalization, with the approval of the members 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 officer of the State Board of Equalization, with the approval of the members 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. 6. (a) The civil service staff of the Franchise Tax Board shall be transferred to the State Board of Equalization in accordance with the provisions of Section 19050.9 of the Government Code. (b) Any civil service staff of the Employment Development Department whose duties and responsibilities are transferred to the State Board of Equalization pursuant to this act, shall be transferred to the State Board of Equalization in accordance with the provisions of Section 19050.9 of the Government Code. SEC. 7. (a) No contract, lease, license, or any other agreement to which the State Board of Equalization or the Franchise Tax Board is a party shall 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 may not in any way affect the rights of the parties to the contract, lease, license, or agreement. (b) No contract, lease, license, or any other agreement to which the State Board of Equalization or the Employment Development Department, pursuant to Division 6 (commencing with Section 13000) of the Unemployment Insurance Code, is a party shall 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 with regard to that contract, lease, license, or other agreement. That assumption by the State Board of Equalization may not in any way affect the rights of the parties to the contract, lease, license, or agreement. SEC. 8. (a) On and after January 1, 2014, 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, 2014, the unencumbered balance of all money available for expenditure by the Employment Development Department in carrying out any functions pursuant to Division 6 (commencing with Section 13000) of the Unemployment Insurance Code 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 pursuant to Division 6 (commencing with Section 13000), shall be transferred to the board. SEC. 9. Sections 1 to 6, inclusive, of this act shall become operative on January 1, 2014.
