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AB-2730 Franchise Tax Board: collection of delinquent amounts: tolls.(2017-2018)

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Date Published: 06/11/2018 09:00 PM
AB2730:v96#DOCUMENT

Amended  IN  Senate  June 11, 2018
Amended  IN  Assembly  April 18, 2018
Amended  IN  Assembly  March 22, 2018

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill
No. 2730


Introduced by Assembly Member Harper

February 15, 2018


An act to amend Section 10878 of the Revenue and Taxation Code, relating to the Franchise Tax Board.


LEGISLATIVE COUNSEL'S DIGEST


AB 2730, as amended, Harper. Franchise Tax Board: collection of delinquent amounts: tolls.
Existing law requires the Franchise Tax Board to collect certain delinquencies related to vehicles, including, but not limited to, unpaid tolls, toll evasion penalties, and any related administrative or service fee, and allows those delinquent amounts to be collected in any manner authorized under law as though those delinquent amounts were a tax due under the Personal Income Tax Law.
This bill would remove the Franchise Tax Board’s responsibility and authority to collect unpaid tolls, toll evasion penalties, and any related administrative or service fees.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 It is the intent of the Legislature to prohibit the Franchise Tax Board from garnishing wages or assets in bank accounts for the collection of unpaid tolls or toll evasion penalties, and instead have those amounts collected by other existing methods, such as offsets from income tax refunds.

SEC. 2.

 Section 10878 of the Revenue and Taxation Code is amended to read:

10878.
 (a) Notwithstanding Sections 10877 and 10951, the responsibility and authority for the collection of the following delinquent amounts, and any interest, penalties, or service fees added thereto, shall be transferred from the department to the Franchise Tax Board:
(1) Registration fees.
(2) Transfer fees.
(3) License fees.
(4) Use taxes.
(5) Penalties for offenses relating to the standing or parking of a vehicle for which a notice of parking violation has been served on the owner, and any administrative service fee added to the penalty.
(6) Any court-imposed fine or penalty assessment, and any administrative service fee added thereto, that is subject to collection by the department.
(b) Any reference in this part to the department in connection with the duty to collect these amounts shall be deemed a reference to the Franchise Tax Board.
(c) The amounts collected under subdivision (a) may be collected in any manner authorized under the law as though they were a tax imposed under Part 10 (commencing with Section 17001) that is final, including, but not limited to, issuance of an order and levy under Article 4 (commencing with Section 706.070) of Chapter 5 of Division 2 of Title 9 of Part 2 of the Code of Civil Procedure in the manner provided for earnings withholding order for taxes. Part 10 (commencing with Section 17001), 10.2 (commencing with Section 18401), or 10.7 (commencing with Section 21001), or any other applicable law shall apply for this purpose in the same manner and with the same force and effect as if the language of Part 10, 10.2, or 10.7, or the other applicable law is incorporated in full into this authority to collect these amounts, except to the extent that the provision is either inconsistent with the collection of these amounts or is not relevant to the collection of these amounts.
(d) Even though the amounts authorized by this section are collected as though they are taxes, amounts so received by the Franchise Tax Board shall be deposited into an appropriate fund or account upon agreement between the Franchise Tax Board and the department. The amounts shall be distributed by the department from the appropriate fund or account in accordance with the laws providing for the deposits and distributions as though the moneys were received by the department.
(e) For any collection action under this section, the Franchise Tax Board may utilize the contract authorization, procedures, and mechanisms available either with respect to the collection of taxes, interest, additions to tax, and penalties pursuant to Section 19376, or with respect to the collection of the delinquencies by the department immediately prior to the time this section takes effect.
(f) The Legislature finds that it is essential for fiscal purposes that the program authorized by this section be expeditiously implemented. Accordingly, Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code shall not apply to any standard, criteria, procedure, determination, rule, notice, or guideline established or issued by the Franchise Tax Board in implementing and administering the program required by this section.
(g) Any standard, criteria, procedure, determination, rule, notice, or guideline, that is not subject to the provisions of Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code pursuant to subdivision (f), shall be approved by the Franchise Tax Board, itself.
(h) The Franchise Tax Board may enter into any agreements or contracts necessary to implement and administer the provisions of this section. The Franchise Tax Board in administering this section may delegate collection activities to the department. Any contracts may provide for payment of the contract on the basis of a percentage of the amount of revenue realized as a result of the contractor’s services under that contract. However, the Franchise Tax Board, in administering this part, may not enter into contracts with private collection agencies as authorized under Section 19377.
(i) The amendments made to this section by the act adding this subdivision shall not be construed to limit the responsibilities of the Department of Motor Vehicles imposed by Sections 4770 and 40267 of the Vehicle Code.