Today's Law As Amended


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SB-718 Taxes: State Board of Equalization.(1995-1996)



As Amends the Law Today


SECTION 1.

 Section 7480 of the Government Code is amended to read:

7480.
 Nothing in this chapter shall prohibit  prohibits  any of the following:
(a)   The dissemination of any financial information that which  is not identified with, or identifiable as being derived from, the financial records of a particular customer.  
(b)   When any police, sheriff’s department, district attorney, or special agent with the Department of Justice  police or sheriff’s department or district attorney  in this state certifies to a bank, credit union, or savings and loan  association in writing that a crime report has been filed that which  involves the alleged fraudulent use of drafts, checks, access cards,  or other orders drawn upon any bank, credit union, or savings and loan  association in this state, the police, sheriff’s department, district attorney, special agent with the Department of Justice, or a county adult protective services agency when investigating the financial abuse of an elder or dependent adult, or a long-term care ombudsperson when investigating the financial abuse of an elder or dependent adult,  police or sheriff’s department or district attorney  may request a bank, credit union, or savings and loan  association to furnish, and a bank, credit union, or savings and loan  association shall furnish, supply,  a statement setting forth the following information with respect to a customer account specified by the requesting party  police or sheriff’s department or district attorney  for a period 90 30  days before,  prior to  and up to 60 30  days following, following  the date of occurrence of the alleged illegal act involving the account:  
(1) The number of items dishonored.
(2) The number of items paid that created overdrafts.
(3) The dollar volume of the dishonored items and items paid which created overdrafts and a statement explaining any credit arrangement between the bank, credit union, or savings association and customer to pay overdrafts.
(4) The dates and amounts of deposits and debits and the account balance on these dates.
(5) A copy of the signature card, including the signature and any addresses appearing on a customer’s signature card.
(6) New bank cards issued.
(7) Change of address requests received.
(8) Power of attorney or trust documents submitted or executed.
(9) The date the account opened and, if applicable, the date the account closed.
(10) Surveillance photographs and video recordings of persons accessing the crime victim’s financial account via an automated teller machine (ATM) or from within the financial institution for dates on which illegal acts involving the account were alleged to have occurred. Nothing in this paragraph does any of the following:
(A) Requires a financial institution to produce a photograph or video recording if it does not possess the photograph or video recording.
(B) Affects any existing civil immunities as provided in Section 47 of the Civil Code or any other provision of law.
(11) A bank, credit union, or savings association that provides the requesting party with copies of one or more complete account statements prepared in the regular course of business shall be deemed to be in compliance with paragraphs (1), (2), (3), and (4).
(c) When any police, sheriff’s department, district attorney, or special agent with the Department of Justice in this state certifies to a bank, credit union, or savings association in writing that a crime report has been filed that involves the alleged fraudulent use of drafts, checks, access cards, or other orders drawn upon any bank, credit union, or savings association doing business in this state, the police, sheriff’s department, district attorney, special agent with the Department of Justice, a county adult protective services office when investigating the financial abuse of an elder or dependent adult, or a long-term care ombudsperson when investigating the financial abuse of an elder or dependent adult, may request, with the consent of the accountholder, the bank, credit union, or savings association to furnish, and the bank, credit union, or savings association shall furnish, a statement setting forth the following information with respect to a customer account specified by the requesting party for a period 30 days before, and up to 30 days following, the date of occurrence of the alleged illegal act involving the account:
(1)   The number of items dishonored.  
(2)   The number of items paid that which  created overdrafts.  
(3)   The dollar volume of the dishonored items and items paid which created overdrafts and a statement explaining any credit arrangement between the bank, credit union, or savings and loan  association and customer to pay overdrafts.  
(4)   The dates and amounts of deposits and debits and the account balance on these dates.  
(5)   A copy of the signature card, including the signature  and any addresses appearing on a customer’s signature card.  
(6)   The date the account opened and, if applicable, the date the account closed.  
(7) Surveillance photographs and video recordings of persons accessing the crime victim’s financial account via an automated teller machine (ATM) or from within the financial institution for dates on which illegal acts involving this account were alleged to have occurred. Nothing in this paragraph does any of the following:
(A) Requires a financial institution to produce a photograph or video recording if it does not possess the photograph or video recording.
(B) Affects any existing civil immunities as provided in Section 47 of the Civil Code or any other provision of law.
(8) A bank, credit union, or savings association doing business in this state that provides the requesting party with copies of one or more complete account statements prepared in the regular course of business shall be deemed to be in compliance with paragraphs (1), (2), (3), and (4).
(d) For purposes of subdivision (c), consent of the accountholder shall be satisfied if an accountholder provides to the financial institution and the person or entity seeking disclosure, a signed and dated statement containing all of the following:
(1) Authorization of the disclosure for the period specified in subdivision (c).
(2) The name of the agency or department to which disclosure is authorized and, if applicable, the statutory purpose for which the information is to be obtained.
(3) A description of the financial records that are authorized to be disclosed.
(e) (c)   (1)  The Attorney General, a supervisory agency, the Franchise Tax Board, the State Board of Equalization, the Employment Development Department, the Controller, Controller  or an inheritance tax referee when administering the Prohibition of Gift and Death Taxes (Part 8 (commencing with Section 13301) of Division 2 of the Revenue and Taxation Code), a police or sheriff’s department or district attorney, a county adult protective services office when investigating the financial abuse of an elder or dependent adult, a long-term care ombudsperson when investigating the financial abuse of an elder or dependent adult, a county  welfare department when investigating welfare fraud, a county auditor-controller or director of finance when investigating fraud against the county, or the Department of Financial Protection and Innovation  or the Department of Corporations  when conducting investigations in connection with the enforcement of laws administered by the Commissioner of Financial Protection and Innovation,  Corporations,  from requesting of an office or branch of a financial institution, and the office or branch from responding to a request, as to whether a person has an account or accounts at that office or branch and, if so, any identifying numbers of the account or accounts.  
(2)  No additional information beyond that specified in this section shall be released to a county welfare department without either the accountholder’s written consent or a judicial writ, search warrant, subpoena, or other judicial order.
(3) A county auditor-controller or director of finance who unlawfully discloses information they are authorized to request under this subdivision is guilty of the unlawful disclosure of confidential data, a misdemeanor, which shall be punishable as set forth in Section 7485.
(f) (d)   The examination by, or disclosure to, any supervisory agency of financial records that which  relate solely to the exercise of its supervisory function. The scope of an agency’s supervisory function shall be determined by reference to statutes that which  grant authority to examine, audit, or require reports of financial records or financial institutions as follows:  
(1)   With respect to the Commissioner of Financial Protection and Innovation  Superintendent of Banks  by reference to Division 1 (commencing with Section 99), Division 1.1 (commencing with Section 1000), Division 1.2 (commencing with Section 2000), Division 1.6 (commencing with Section 4800), Division 2 (commencing with Section 5000), Division 5 (commencing with Section 14000), Division 7 (commencing with Section 18000), Division  15 (commencing with Section 31000), and Division 16 (commencing with Section 33000), 33000)  of the Financial Code.  
(2)  With respect to the Department of Savings and Loan by reference to Division 2 (commencing with Section 5000) of the Financial Code.
(3)  With respect to the Corporations Commissioner by reference to Division 5 (commencing with Section 14000) and Division 7 (commencing with Section 18000) of the Financial Code.
(2) (4)   With respect to the Controller by reference to Title 10 (commencing with Section 1300) of Part 3 of the Code of Civil Procedure.  
(3) (5)   With respect to the Administrator of Local Agency Security by reference to Article 2 (commencing with Section 53630) of Chapter 4 of Part 1 of Division 2 of Title 5 of the Government Code.  
(g) (e)   The disclosure to the Franchise Tax Board of (1) the amount of any security interest that  a financial institution has in a specified asset of a customer or (2) financial records in connection with the filing or audit of a tax return or tax information return that are  required to be filed by the financial institution pursuant to Part 10 (commencing with Section 17001), Part  11 (commencing with Section 23001), or Part  18 (commencing with Section 38001), 38001)  of the Revenue and Taxation Code.  
(h) (f)   The disclosure to the State Board of Equalization of any of the following:  
(1)   The information required by Sections 6702, 6703, 8954, 8957, 30313, 30315, 32383, 32387, 38502, 38503, 40153, 40155, 41122, 41123.5, 43443, 43444.2, 44144, 45603, 45605, 46404,  46406, 50134, 50136, 55203, 55205, 60404, and 60407 and 55205  of the Revenue and Taxation Code.  
(2)   The financial records in connection with the filing or audit of a tax return required to be filed by the financial institution pursuant to Part Parts  1 (commencing with Section 6001), Part  2 (commencing with Section 7301), Part  3 (commencing with Section 8601), Part  13 (commencing with Section 30001), Part  14 (commencing with Section 32001), and Part  17 (commencing with Section 37001), 37001)  of Division 2 of the Revenue and Taxation Code.  
(3)   The amount of any security interest a financial institution has in a specified asset of a customer, if the inquiry is directed to the branch or office where the interest is held.  
(i) (g)   The disclosure to the Controller of the information required by Section 7853 of the Revenue and Taxation Code.  
(j) (h)   The disclosure to the Employment Development Department of the amount of any security interest a financial institution has in a specified asset of a customer, if the inquiry is directed to the branch or office where the interest is held.  
(k) (i)   The disclosure by a construction lender, as defined in Section 8006 3087  of the Civil Code, to the Registrar of Contractors, of information concerning the making of progress payments to a prime contractor requested by the registrar in connection with an investigation under Section 7108.5 of the Business and Professions Code.  
( (j) 
l
)    Upon receipt of a written request from a local child support agency  district attorney  referring to a support order pursuant to Section 17400 11475.1  of the Family  Welfare and Institutions  Code, a financial institution shall disclose the following information concerning the account or the person named in the request, whom the local child support agency  district attorney  shall identify, whenever possible, by social security number:  
(1)   If the request states the identifying number of an account at a financial institution, the name of each owner of the account.  
(2)   Each account maintained by the person at the branch to which the request is delivered, and, if the branch is able to make a computerized search, each account maintained by the person at any other branch of the financial institution located in this state.  
(3)   For each account disclosed pursuant to paragraphs (1) and (2), the account number, current balance, street address of the branch where the account is maintained, and, to the extent available through the branch’s computerized search, the name and address of any other person listed as an owner.  
(4)  Whenever the request prohibits the disclosure, a financial institution shall not disclose either the request or its response, to an owner of the account or to any other person, except the officers and employees of the financial institution who are involved in responding to the request and to attorneys, employees of the local child support agencies,  auditors, and regulatory authorities who have a need to know in order to perform their duties, and except as disclosure may be required by legal process.
(5)  No financial institution, or any officer, employee, or agent thereof, shall be liable to any person for (A) disclosing information in response to a request pursuant to this subdivision, (B) failing to notify the owner of an account, or complying with a request under this paragraph not to disclose to the owner, the request or disclosure under this subdivision, or (C) failing to discover any account owned by the person named in the request pursuant to a computerized search of the records of the financial institution.
(6)  The local child support agency  district attorney  may request information pursuant to this subdivision only when the local child support agency  district attorney  has received at least one of the following types of physical evidence:
(A)   Any of the following, dated within the last three years:  
(i)   Form 599.  
(ii)   Form 1099.  
(iii)   A bank statement.  
(iv)   A check.  
(v)   A bank passbook.  
(vi)   A deposit slip.  
(vii)   A copy of a federal or state income tax return.  
(viii)   A debit or credit advice.  
(ix)   Correspondence that identifies the child support obligor by name, the bank, and the account number.  
(x)   Correspondence that identifies the child support obligor by name, the bank, and the banking services related to the account of the obligor.  
(xi)   An asset identification report from a federal agency.  
(B)   A sworn declaration of the custodial parent during the 12 months immediately preceding the request that the person named in the request has had or may have had an account at an office or branch of the financial institution to which the request is made.  
(7)  Information obtained by a local child support agency  district attorney  pursuant to this subdivision shall be used only for purposes that are directly connected with within  the administration of the duties of the local child support agency  district attorney  pursuant to Section 17400 11475.1  of the Family  Welfare and Institutions  Code.
(m) (1) As provided in paragraph (1) of subdivision (c) of Section 666 of Title 42 of the United States Code, upon receipt of an administrative subpoena on the current federally approved interstate child support enforcement form, as approved by the federal Office of Management and Budget, a financial institution shall provide the information or documents requested by the administrative subpoena.
(2) The administrative subpoena shall refer to the current federal Office of Management and Budget control number and be signed by a person who states that they are an authorized agent of a state or county agency responsible for implementing the child support enforcement program set forth in Part D (commencing with Section 651) of Subchapter IV of Chapter 7 of Title 42 of the United States Code. A financial institution may rely on the statements made in the subpoena and has no duty to inquire into the truth of any statement in the subpoena.
(3) If the person who signs the administrative subpoena directs a financial institution in writing not to disclose either the subpoena or its response to any owner of an account covered by the subpoena, the financial institution shall not disclose the subpoena or its response to the owner.
(4) No financial institution, or any officer, employee, or agent thereof, shall be liable to any person for (A) disclosing information or providing documents in response to a subpoena pursuant to this subdivision, (B) failing to notify any owner of an account covered by the subpoena or complying with a request not to disclose to the owner, the subpoena or disclosure under this subdivision, or (C) failing to discover any account owned by the person named in the subpoena pursuant to a computerized search of the records of the financial institution.
(n) The dissemination of financial information and records pursuant to any of the following:
(1) Compliance by a financial institution with the requirements of Section 2892 of the Probate Code.
(2) Compliance by a financial institution with the requirements of Section 2893 of the Probate Code.
(3) An order by a judge upon a written ex parte application by a peace officer showing specific and articulable facts that there are reasonable grounds to believe that the records or information sought are relevant and material to an ongoing investigation of a felony violation of Section 186.10 or of any felony subject to the enhancement set forth in Section 186.11.
(A) The ex parte application shall specify with particularity the records to be produced, which shall be only those of the individual or individuals who are the subject of the criminal investigation.
(B) The ex parte application and any subsequent judicial order shall be open to the public as a judicial record unless ordered sealed by the court, for a period of 60 days. The sealing of these records may be extended for 60-day periods upon a showing to the court that it is necessary for the continuance of the investigation. Sixty-day extensions may continue for up to one year or until termination of the investigation of the individual or individuals, whichever is sooner.
(C) The records ordered to be produced shall be returned to the peace officer applicant or their designee within a reasonable time period after service of the order upon the financial institution.
(D) Nothing in this subdivision shall preclude the financial institution from notifying a customer of the receipt of the order for production of records unless a court orders the financial institution to withhold notification to the customer upon a finding that the notice would impede the investigation.
(E) Where a court has made an order pursuant to this paragraph to withhold notification to the customer under this paragraph, the peace officer or law enforcement agency who obtained the financial information shall notify the customer by delivering a copy of the ex parte order to the customer within 10 days of the termination of the investigation.
(4) An order by a judge issued pursuant to subdivision (c) of Section 532f of the Penal Code.
(5) No financial institution, or any officer, employee, or agent thereof, shall be liable to any person for any of the following:
(A) Disclosing information to a probate court pursuant to Sections 2892 and 2893.
(B) Disclosing information in response to a court order pursuant to paragraph (3).
(C) Complying with a court order under this subdivision not to disclose to the customer, the order, or the dissemination of information pursuant to the court order.
(o) Disclosure by a financial institution to a peace officer, as defined in Section 830.1 of the Penal Code, pursuant to the following:
(1) Paragraph (1) of subdivision (a) of Section 1748.95 of the Civil Code, provided that the financial institution has first complied with the requirements of paragraph (2) of subdivision (a) and subdivision (b) of Section 1748.95 of the Civil Code.
(2) Paragraph (1) of subdivision (a) of Section 4002 of the Financial Code, provided that the financial institution has first complied with the requirements of paragraph (2) of subdivision (a) and subdivision (b) of Section 4002 of the Financial Code.
(3) Paragraph (1) of subdivision (a) of Section 22470 of the Financial Code, provided that any financial institution that is a finance lender has first complied with the requirements of paragraph (2) of subdivision (a) and subdivision (b) of Section 22470 of the Financial Code.
(p) When the governing board of the Public Employees’ Retirement System or the State Teachers’ Retirement System certifies in writing to a financial institution that a benefit recipient has died and that transfers to the benefit recipient’s account at the financial institution from the retirement system occurred after the benefit recipient’s date of death, the financial institution shall furnish the retirement system with the name and address of any coowner, cosigner, or any other person who had access to the funds in the account following the date of the benefit recipient’s death, or if the account has been closed, the name and address of the person who closed the account.
(q) When the retirement board of a retirement system established under the County Employees Retirement Law of 1937 certifies in writing to a financial institution that a retired member or the beneficiary of a retired member has died and that transfers to the account of the retired member or beneficiary of a retired member at the financial institution from the retirement system occurred after the date of death of the retired member or beneficiary of a retired member, the financial institution shall furnish the retirement system with the name and address of any coowner, cosigner, or any other person who had access to the funds in the account following the date of death of the retired member or beneficiary of a retired member, or if the account has been closed, the name and address of the person who closed the account.
(r) When the Franchise Tax Board certifies in writing to a financial institution that (1) a taxpayer filed a tax return that authorized a direct deposit refund with an incorrect financial institution account or routing number that resulted in all or a portion of the refund not being received, directly or indirectly, by the taxpayer; (2) the direct deposit refund was not returned to the Franchise Tax Board; and (3) the refund was deposited directly on a specified date into the account of an accountholder of the financial institution who was not entitled to receive the refund, then the financial institution shall furnish to the Franchise Tax Board the name and address of any coowner, cosigner, or any other person who had access to the funds in the account following the date of direct deposit refund, or if the account has been closed, the name and address of the person who closed the account.
(s) The dissemination of financial information and records pursuant to Section 6091.3 of the Business and Professions Code.

SEC. 2.

 Section 42882 of the Public Resources Code is amended to read:

42882.
 In carrying out this chapter, the department board  may solicit and use any and all  expertise available in other state agencies and, if agencies, including, but not limited to, the State Board of Equalization, and, where  an existing state agency performs functions of a similar nature to the department’s board’s  functions, the department board  may contract with, or cooperate with, with  that agency in carrying out this chapter. If the board contracts with the State Board of Equalization to collect the fee imposed in Section 42885, the State Board of Equalization may collect that fee pursuant to the Fee Collection Procedures Law (Part 30 (commencing with Section 55001) of Division 2 of the Revenue and Taxation Code). 

SEC. 3.

 Section 99500 of the Public Utilities Code is amended to read:

99500.
 (a)   Except as specified in subdivision (b), in addition to taxes imposed pursuant to Part 2 (commencing with Section 7301), Part 3 (commencing with Section 8601), and Part 31 (commencing with Section 60001) of Division 2 of the Revenue and Taxation Code, a tax of one cent ($0.01) per gallon (or, in the case of compressed natural gas, per 100 cubic feet thereof as measured at standard pressure and temperature) may be imposed pursuant to Section 99502 by a taxing entity, as defined in Section 99501, in the area which is under its jurisdiction and which is included in a county that has approved a proposition pursuant to Section 4 of Article XIX of the California Constitution.  
(b)   No tax shall be imposed under this chapter on fuel used in propelling an aircraft or a vessel.  

SEC. 4.

 Section 99505 of the Public Utilities Code is amended to read:

99505.
 The ordinance shall include provisions identical to those contained in Part 2 (commencing with Section 7301), Part 3 (commencing with Section 8601), and Part 31 (commencing with Section 60001) of Division 2 of the Revenue and Taxation Code, except that the name of the taxing entity as the taxing agency shall be substituted for that of the state.

SEC. 5.

 Section 99510 is added to the Public Utilities Code, to read:

99510.
 (a)  Notwithstanding Section 99505, any person required to pay a tax under Sections 60051, 60052, and 60058 of the Revenue and Taxation Code shall also collect the tax imposed under this chapter from any person to whom he or she sells diesel fuel and shall also pay that tax for all diesel fuel that he or she uses.
(b)  Any person paying the tax who, in turn, sells diesel fuel to another, whether or not for use, shall include the tax as part of the selling price of the fuel. Any person thereafter who pays a price for the diesel fuel, which includes an increment for the tax, and who subsequently resells the diesel fuel shall include the tax paid as part of the selling price of the fuel.

SEC. 6.

 Section 6076 is added to the Revenue and Taxation Code, to read:

6076.
 No permit shall be required of any person who engages in business in this state as a seller of hay to an association or cooperative that has obtained a permit if that person engages in no other taxable sales of tangible personal property at retail.

SEC. 6.5.

 Section 6202 of the Revenue and Taxation Code is amended to read:

6202.
 (a)   Every person storing, using, or otherwise consuming in this state tangible personal property purchased from a retailer is liable for the tax. His or her liability is not extinguished until the tax has been paid to this state except that a receipt from a retailer engaged in business in this state or from a retailer who is authorized by the board, under the rules and regulations as it may prescribe, to collect the tax and who is, for the purposes of this part relating to the use tax, regarded as a retailer engaged in business in this state, given to the purchaser pursuant to Section 6203, is sufficient to relieve the purchaser from further liability for the tax to which the receipt refers.  
(b)   Notwithstanding any other provision, when a person purchases a vessel or aircraft from another person through a broker, the purchaser’s liability for use tax is relieved if the purchaser has paid an amount as sales or use tax to the broker, and the purchaser obtains and retains a receipt from the broker showing the payment of that tax to the broker.  
(c)   Notwithstanding any other provision, when a person purchases a vessel or aircraft from another person through a broker, if the broker collects from the purchaser an amount as sales or use tax, the broker shall be liable for that amount under Section 6204 as if the broker were a retailer engaged in business in this state required to collect that amount as use tax from the purchaser, and that amount constitutes a debt owed by the broker to this state.  

SEC. 7.

 Section 6203 of the Revenue and Taxation Code is amended to read:

6203.
 (a)  Except as provided by Sections 6292 and 6293, every retailer engaged in business in this state and making sales of tangible personal property for storage, use, or other consumption in this state, not exempted under Chapter 3.5 (commencing with Section 6271) or Chapter 4 (commencing with Section 6351), shall, at the time of making the sales or, if the storage, use, or other consumption of the tangible personal property is not then taxable hereunder, at the time the storage, use, or other consumption becomes taxable, collect the tax from the purchaser and give to the purchaser a receipt therefor in the manner and form prescribed by the board.
(b)  As respects leases constituting sales of tangible personal property, the tax shall be collected from the lessee at the time amounts are paid by the lessee under the lease.
(c)  “Retailer engaged in business in this state” as used in this section and Section 6202 means and includes any of the following:
(1) (a)   Any retailer maintaining, occupying, or using, permanently or temporarily, directly or indirectly, or through a subsidiary, or agent, by whatever name called, an office, place of distribution, sales or sample room or place, warehouse or storage place, or other place of business.  
(2) (b)   Any retailer having any representative, agent, salesperson, canvasser, independent contractor, or solicitor operating in this state under the authority of the retailer or its subsidiary for the purpose of selling, delivering, installing, assembling, or the taking of orders for any tangible personal property.  
(3) (c)   As respects a lease, any retailer deriving rentals from a lease of tangible personal property situated in this state.  
(d)  Any retailer soliciting orders for tangible personal property by means of a telecommunication or television shopping system (which utilizes toll free numbers) which is intended by the retailer to be broadcast by cable television or other means of broadcasting, to consumers located in this state.
(e)  Any retailer who, pursuant to a contract with a broadcaster or publisher located in this state, solicits orders for tangible personal property by means of advertising that is disseminated primarily to consumers located in this state and only secondarily to bordering jurisdictions.
(4) (f)   (A) (1)   Any retailer soliciting orders for tangible personal property by mail if the solicitations are substantial and recurring and if the retailer benefits from any banking, financing, debt collection, telecommunication, or marketing activities occurring in this state or benefits from the location in this state of authorized installation, servicing, or repair facilities.  
(B) (2)   This paragraph subdivision  shall become operative upon the enactment of any congressional act that authorizes states to compel the collection of state sales and use taxes by out-of-state retailers.  
(g)  Any retailer having a franchisee or licensee operating under its trade name if the franchisee or licensee is required to collect the tax under this section.
(h)  Any retailer who, pursuant to a contract with a cable television operator located in this state, solicits orders for tangible personal property by means of advertising that is transmitted or distributed over a cable television system in this state.
(5) (i)   Notwithstanding Section 7262, a retailer specified in paragraph (4),  subdivision (d), (e), (f), (g), or (h) above,  and not specified in paragraph (1), (2), or (3),  subdivision (a), (b), or (c) above,  is a “retailer engaged in business in this state” for the purposes of this part and Part 1.5 (commencing with Section 7200) only.  
(d) (j)   (1)   For purposes of this section, “engaged in business in this state” does not include the taking of orders from customers in this state through a computer telecommunications network located in this state which is not directly or indirectly owned by the retailer when the orders result from the electronic display of products on that same network. The exclusion provided by this subdivision shall apply only to a computer telecommunications network that consists substantially of online on-line  communications services other than the displaying and taking of orders for products.  
(2)  This subdivision shall become inoperative upon the earlier of the following dates:
(2) (A)  This   subdivision shall become inoperative upon the  The  operative date of provisions of a congressional act that authorize states to compel the collection of state sales and use taxes by out-of-state retailers.  
(e) (B)  Except   as provided in this subdivision, a retailer is not a “retailer engaged in business in this state” under paragraph (2) of subdivision (c) if that retailer’s sole physical presence in this state is to engage in convention and trade show activities as described in Section 513(d)(3)(A) of the Internal Revenue Code, and if the retailer, including any of its representatives, agents, salespersons, canvassers, independent contractors, or solicitors, does not engage in those convention and trade show activities for more than 15 days, in whole or in part, in this state during any 12-month period and did not derive more than one hundred thousand dollars ($100,000) of net income from those activities in this state during the prior calendar year. Notwithstanding the preceding sentence, a retailer engaging in convention and trade show activities, as described in Section 513(d)(3)(A) of the Internal Revenue Code, is a “retailer engaged in business in this state,” and is liable for collection of the applicable use tax, with respect to any sale of tangible personal property occurring at the convention and trade show activities and with respect to any sale of tangible personal property made pursuant to an order taken at or during those convention and trade show activities. The date five years from the effective date of the act adding this subdivision.  
(f) Any limitations created by this section upon the definition of “retailer engaged in business in this state” shall apply only for purposes of tax liability under this code. Nothing in this section is intended to affect or limit, in any way, civil liability or jurisdiction under Section 410.10 of the Code of Civil Procedure.

SEC. 8.

 Section 6283 of the Revenue and Taxation Code is amended to read:

6283.
 (a)   There are exempted from the computation of the amount of the sales tax the gross receipts from the sale in this state of a vehicle subject to identification under Division 16.5 (commencing with Section 38000) of the Vehicle Code or of a vessel or of an aircraft when the retailer is other than a person required to hold a seller’s permit pursuant to Article 2 (commencing with Section 6066) of Chapter 2 by reason of the number, scope, and character of his or her sales of those vehicles, vessels, or of aircraft, as the case may be.  
(b)   The exemption provided in subdivision (a) shall not apply to either of the following:  
(1)   Any sale of a vehicle required to be identified under Division 16.5 (commencing with Section 38000) of the Vehicle Code when the retailer is a person licensed or certificated pursuant to the Vehicle Code as a manufacturer, remanufacturer, dealer, or dismantler.  
(2)   Any sale of a vessel or an aircraft when a broker arranges the sale between two private parties and the broker collects sales tax reimbursement on the transaction.  

SEC. 9.

 Section 6480.1 of the Revenue and Taxation Code is amended to read:

6480.1.
 (a) At   any time that motor vehicle fuel tax or diesel fuel tax is imposed or would be imposed, but for the dyed diesel fuel exemption in paragraph (1) of subdivision (a) of Section 60100, or the train operator exemption in paragraph (7) of subdivision (a) of Section 60100 or paragraph (11) of subdivision (a) of Section 7401, or, pursuant to subdivision (f) of Section 6480, would be deemed to be imposed, on any removal, entry, or sale  After service of written notification by the board, on the first distribution  in this state of motor vehicle fuel, aircraft jet fuel, or diesel fuel, the supplier  fuel subject to the motor vehicle fuel license tax, the distributor  shall collect prepayment of retail sales tax from the person to whom the motor vehicle fuel, aircraft jet fuel, or diesel fuel is sold. However, if no sale occurs at the time of imposition of motor vehicle fuel tax or diesel fuel tax, the supplier shall prepay the retail sales tax on that motor vehicle fuel, aircraft jet fuel, or diesel fuel.  fuel is distributed.  The prepayment required to be collected by the supplier distributor  constitutes a debt owed by the supplier distributor  to this state until paid to the board, until satisfactory proof has been submitted to prove that the retailer of the fuel has paid the retail sales tax to the board, or until a supplier distributor  or wholesaler broker  who has consumed the fuel has paid the use tax to the board. Each supplier distributor  shall report and pay the prepayment amounts to the board, in on  a form as  prescribed by the board, in the period in which the fuel is sold. distributed.  On each subsequent sale distribution  of that motor vehicle  fuel, each seller, other than the retailer, shall collect from his or her purchaser a prepayment computed using the rate applicable at the time of sale. distribution.  Each supplier distributor  shall provide his or her purchaser with an invoice for, or other evidence of,  a receipt or invoice for  the collection of the prepayment amounts which shall be separately stated thereon.  
(b)   (1) After  A wholesaler   service of written notification by the board, the broker  shall collect prepayment of the retail sales tax from the person to whom the motor vehicle fuel, aircraft jet fuel, or diesel fuel is sold. Each wholesaler fuel is transferred. The prepayment required to be collected by the broker constitutes a debt owed by the broker to the state until paid to the board, or until satisfactory proof has been submitted to prove that the retailer of the fuel has paid the tax to the board. Each broker  shall provide his or her purchaser with an  a receipt or  invoice for or other evidence of  the collection of the prepayment amounts, amounts  which shall be separately stated thereon.  
(2)  Each wholesaler broker  shall report and pay the prepayment amounts  to the board, in on  a form as  prescribed by the board and for  board, in  the period in which the motor vehicle fuel, aircraft jet fuel, or diesel fuel was sold, all of the following: fuel is distributed. The amount of prepayment paid by the broker to his or her vendor shall constitute a credit against the amount of prepayment required to be collected and remitted by the broker to the board. 
(A) The number of gallons of fuel sold and the amount of sales tax prepayments collected by the wholesaler.
(B) The number of tax-paid gallons purchased and the amount of sales tax prepayments made by the wholesaler.
(C) In the event that the amount of sales tax prepayments collected by the wholesaler is greater than the amount of sales tax prepayments made by the wholesaler, then the excess constitutes a debt owed by the wholesaler to the state until paid to the board, or until satisfactory proof has been submitted that the retailer of the fuel has paid the tax to the board.
(c)   A supplier distributor  or wholesaler broker  who pays the prepayment and issues a resale certificate to the seller, but subsequently consumes the motor vehicle fuel, aircraft jet fuel, or diesel fuel,  fuel,  shall be entitled to a credit against his or her sales and use taxes due and payable for the period in which the prepayment was made, provided that he or she reports and pays the use tax to the board on the consumption of that fuel.  
(d)   The amount of a prepayment paid by the retailer or a supplier distributor  or wholesaler broker  who has consumed the motor vehicle fuel, aircraft jet fuel, or diesel  fuel to the seller from whom he or she acquired the fuel shall constitute a credit against his or her sales and use taxes due and payable for the period in which the sale distribution  was made. Failure of the supplier distributor  or wholesaler broker  to report prepayments or the supplier’s distributor’s  or wholesaler’s broker’s  failure to comply with any other duty under this article shall not constitute grounds for denial of the credit to the retailer, supplier, distributor,  or wholesaler, broker,  either on a temporary or permanent basis or otherwise. To  The retailer, distributor, or broker shall  be entitled to the credit, the retailer, supplier, or wholesaler shall retain for inspection by the board any receipts, invoices, or other documents showing the amount of sales tax credit to the extent of the amount  prepaid to his or her supplier, together with the evidence of payment. supplier as evidenced by purchase documents, invoices, or receipts stating separately the amount of tax prepayment.  
(e)   The rate of the prepayment required to be collected during the period from July 1, 1986, through March 31, 1987, shall be four cents ($0.04) per gallon of motor vehicle fuel distributed or transferred.  
(f) The rate of prepayment required to be collected for motor vehicle fuel, aircraft jet fuel, and diesel fuel as established by the board in effect on January 1, 2013, shall remain in effect through June 30, 2013.
(g) (f)   On July April  1 of each succeeding year, the prepayment  rate per gallon for motor vehicle fuel,  gallon,  rounded to the nearest one-half of one cent ($0.005),  cent,  of the required prepayment shall be established by the board based upon 80 percent of the combined state and local sales tax rate established by Sections 6051, 6051.2, 6051.3, 6051.5, 7202, and 7203.1,  and 7202 of this code,  and Section 35 of Article XIII of the California Constitution on the arithmetic average selling price (excluding sales tax) as reported by an industry publication of  determined by the State Energy Resources Conservation and Development Commission, in its latest publication of the “Quarterly Oil Report,” of  all grades of gasoline sold through a self-service gasoline station. The board shall make its determination of the rate no later than March November  1 of the same  year as  prior to  the effective date of the new rate. Immediately upon making its determination and setting of the rate, the board shall each year, no later than May January  1, notify every supplier, wholesaler, by mail every distributor, broker,  and retailer of motor vehicle fuel. In the event the price of fuel decreases or increases or an exemption from sales tax for sales of fuel is enacted,  increases,  and the established rate results in or could result in  prepayments which consistently exceed or are significantly lower than the retailers’ sales tax liability, the board may readjust the rate.  
(h) On July 1 of each succeeding year, the prepayment rate per gallon for aircraft jet fuel, rounded to the nearest one-half of one cent ($0.005), shall be established by the board based upon 80 percent of the combined state and local sales tax rate established by Sections 6051, 6051.2, 6051.3, 6051.5, 7202, and 7203.1, and Section 35 of Article XIII of the California Constitution on the arithmetic average selling price (excluding sales and state excise taxes) as determined by the board based on published industry reports. The board shall make its determination of the rate no later than March 1 of the same year as the effective date of the new rate. Immediately upon making its determination and setting of the rate, the board shall each year, no later than May 1, notify every supplier, wholesaler, and retailer of aircraft jet fuel. In the event the price of aircraft jet fuel decreases or increases, and the established rate results in prepayments that consistently exceed or are significantly lower than the retailers’ sales tax liability, the board may readjust the rate.
(i) On July 1 of each succeeding year, the prepayment rate per gallon for diesel fuel, rounded to the nearest one-half of one cent ($0.005), shall be established by the board based upon 80 percent of the combined state and local sales tax rate established by Sections 6051, 6051.2, 6051.3, 6051.5, 6051.8, 7202, and 7203.1, and Section 35 of Article XIII of the California Constitution on the arithmetic average selling price (excluding sales and state excise taxes) as determined by the board based on published industry reports. The board shall make its determination of the rate no later than March 1 of the same year as the effective date of the new rate. Immediately upon making its determination and setting of the rate, the board shall each year, no later than May 1, notify every supplier, wholesaler, and retailer of diesel fuel. In the event the rate of sales tax imposed on sales of diesel fuel increases or decreases or the price of diesel fuel decreases or increases, and the established rate results in or could result in prepayments that consistently exceed or are significantly lower than the retailers’ sales tax liability, the board may readjust the rate.
(j) (1) Notwithstanding any other provision of this section, motor vehicle fuel sold by a supplier or wholesaler to a qualified purchaser who, pursuant to a contract with the State of California or its instrumentalities, resells that fuel to the State of California or its instrumentalities shall be exempt from the prepayment requirements.
(2) A qualified purchaser who acquires motor vehicle fuel for subsequent resale to the State of California or its instrumentalities pursuant to this subdivision shall furnish to the supplier or wholesaler from whom the fuel is acquired an exemption certificate, completed in accordance with any instructions or regulations as the board may prescribe. The supplier or wholesaler shall retain the certificate in his or her records in support of the exemption. To qualify for the prepayment exemption, both of the following conditions shall apply:
(A) The qualified purchaser does not take possession of the fuel at any time.
(B) The fuel is delivered into storage tanks owned or leased by the State of California or its instrumentalities via facilities of the supplier or wholesaler, or by common or contract carriers under contract with the supplier or wholesaler.
(3) For purposes of this subdivision, “qualified purchaser” means a wholesaler who does not have or maintain a storage facility or facilities for the purpose of selling motor vehicle fuel.

SEC. 10.

 Section 6830 of the Revenue and Taxation Code is amended to read:

6830.
 (a)   For the purpose of identifying persons or businesses who may owe taxes or other amounts, or for the purpose of collecting taxes, interest, additions to tax, and penalties, the board may enter into agreement with one or more private persons, companies, associations, or corporations providing these services outside this state with respect to the identification of persons or businesses who may owe taxes or other amounts, or the collection of taxes, interest, additions to tax, and penalties. The agreement may provide, at the discretion of the board, the rate of payment and the manner in which compensation for services shall be paid. The compensation may be added to the amount required to be identified or collected by the collection agency or provider of these services from the tax debtor. The board shall provide the necessary information for the contractor to fulfill its obligation under that agreement.  
(b)   With the approval of the board, the contractor may, as part of the collection process, refer the tax debt for litigation by its legal representatives in the name of the board.  

SEC. 11.

 Section 7094 of the Revenue and Taxation Code is amended to read:

7094.
 (a)   The California Department of Tax and Fee Administration  board  shall release any levy or notice to withhold issued pursuant to this part on any property in the event that the expense of the sale process exceeds the liability for which the levy is made.  
(b)   (1)  (A)  The Taxpayers’ Rights Advocate may order the release of any levy or notice to withhold issued pursuant to this part or, within 90 days from the receipt of funds pursuant to a levy or notice to withhold, order the return of any amount up to two one  thousand three five  hundred dollars ($2,300) ($1,500)  of moneys received, upon his or her finding that the levy or notice to withhold threatens the health or welfare of the taxpayer or his or her spouse and dependents or family.  
(B) The amount the Taxpayers’ Rights Advocate may return to each taxpayer subject to a levy or notice to withhold, is limited to two thousand three hundred dollars ($2,300), or the adjusted amount as specified in paragraph (2), in any monthly period.
(C) The Taxpayers’ Rights Advocate may order amounts returned in the case of a seizure of property as a result of a jeopardy determination, subject to the amounts set or adjusted pursuant to this section and if the ultimate collection of the amount due is no longer in jeopardy.
(2) (A) The California Department of Tax and Fee Administration shall adjust the two-thousand-three-hundred-dollar ($2,300) amount specified in paragraph (1) as follows:
(i) On or before March 1, 2016, and on or before March 1 each year thereafter, the California Department of Tax and Fee Administration shall multiply the amount applicable for the current fiscal year by the inflation factor adjustment calculated based on the percentage change in the Consumer Price Index, as recorded by the California Department of Industrial Relations for the most recent year available, and the formula set forth in paragraph (2) of subdivision (h) of Section 17041. The resulting amount will be the applicable amount for the succeeding fiscal year only when the applicable amount computed is equal to or exceeds a new operative threshold, as defined in subparagraph (B).
(ii) When the applicable amount equals or exceeds an operative threshold specified in subparagraph (B), the resulting applicable amount, rounded to the nearest multiple of one hundred dollars ($100), shall be operative for purposes of paragraph (1) beginning July 1 of the succeeding fiscal year.
(B) For purposes of this paragraph, “operative threshold” means an amount that exceeds by at least one hundred dollars ($100) the greater of either the amount specified in paragraph (1) or the amount computed pursuant to subparagraph (A) as the operative adjustment to the amount specified in paragraph (1).
(c)   The California Department of Tax and Fee Administration  board  shall not sell any seized property until it has first notified the taxpayer in writing of the exemptions from levy under Chapter 4 (commencing with Section 703.010) of Division 2 of  Title 9 of Part 2 of  the Code of Civil Procedure.  
(d) Except   as provided in subparagraph (C) of paragraph (1) of subdivision (b), this section does This section shall  not apply to the seizure of any property as a result of a jeopardy determination. assessment.  

SEC. 12.

 Section 8150 of the Revenue and Taxation Code is amended to read:

8150.
 If judgment is rendered for the plaintiff, the amount of the judgment shall first be credited on any license  taxes due from the plaintiff under this part, Part 3 (commencing with Section 8601), and Part 31 (commencing with Section 60001), and the balance of the judgment shall be refunded to the plaintiff.

SEC. 13.

 Section 8151 of the Revenue and Taxation Code is amended to read:

8151.
 In any judgment, interest shall be allowed at the modified adjusted rate per annum established pursuant to Section 6591.5 upon the amount found to have been illegally collected from the date of payment thereof to the date of allowance of credit on account of the judgment or to a date preceding the date of the refund warrant by not more than 30 days, the date to be determined by the board.

SEC. 14.

 Section 8269 of the Revenue and Taxation Code is amended to read:

8269.
 (a)   Every taxpayer is entitled to be reimbursed for any reasonable fees and expenses related to a hearing before the board if all of the following conditions are met:  
(1)   The taxpayer files a claim for the fee and expenses with the board within one year of the date the decision of the board becomes final. board.  
(2)   The board, in its sole discretion, finds that the action taken by the board staff was unreasonable.  
(3)   The board decides that the taxpayer be awarded a specific amount of fees and expenses related to the hearing, in an amount which shall be  determined by the board in its sole discretion. board.  
(b)   To determine whether the board staff has been unreasonable, the board shall consider whether the board staff  taxpayer  has established that its position was  the position of the board staff was not  substantially justified.  
(c)   The amount of reimbursed fees and expenses shall be limited to the following:  
(1)   Fees and expenses incurred after the date of the notice of determination, jeopardy determination, or a claim for refund. filing petitions for redetermination and claims for refund.  
(2)   If the board finds that the staff was unreasonable with respect to certain issues but reasonable with respect to other issues, the amount of reimbursed fees and expenses shall be limited to those that relate to the issues where the staff was unreasonable.  
(d)   Any proposed award by the board pursuant to subdivision (a) shall be available as a public record for at least 10 days prior to the effective date of the award.  
(e) The amendments to this section by the act adding this subdivision shall be operative for claims filed on or after January 1, 2000.

SEC. 15.

 Section 8608 of the Revenue and Taxation Code is amended to read:

8608.
 (a)   “User” includes any person who, within the meaning of the term “use” as defined in this chapter, uses fuel.  
(b)   Article 1 (commencing with Section 8701) of Chapter 3 and Article 1 (commencing with Section 8751) of Chapter 4 do not apply to (1) a user whose sole use of fuel in this state is for the propulsion of a privately operated passenger motor vehicle, a commercial vehicle with unladen weight of less than 7,000 pounds, or a privately operated two-axle truck which the user has rented or leased for a period of 30 days or less; or (2) an interstate user whose sole use of fuel in this state is for the propulsion of a motor vehicle that is not a qualified motor vehicle and is operated in connection with an interstate trip; if the fuel used, except fuel brought into this state in the fuel tank of the vehicle, is purchased from and delivered into the fuel tank of the vehicle by a vendor.  
(c)   When the board determines that it is necessary for the efficient administration of this part to regard any lessor of vehicles as the agent of the lessee, with regard to the equipment leased, the board may so regard the lessor and may qualify the lessee as the user for purposes of this part.  

SEC. 16.

 Section 8619 is added to the Revenue and Taxation Code, to read:

8619.
 “Interstate user” includes any person who uses fuel in the propulsion of a motor vehicle in this state and who operates the motor vehicle within and without the state or the United States.

SEC. 17.

 Section 8620 is added to the Revenue and Taxation Code, to read:

8620.
 “Qualified motor vehicle” means a motor vehicle that is used, designed, or maintained for transportation of persons or property, and that has two axles and a gross vehicle weight or registered gross vehicle weight exceeding 26,000 pounds or 11,797 kilograms, has three or more axles regardless of weight, or is used in combination, when the weight of that combination exceeds 26,000 pounds or 11,797 kilograms gross vehicle weight. “Qualified motor vehicle” does not include a recreational vehicle.

SEC. 18.

 Section 8621 is added to the Revenue and Taxation Code, to read:

8621.
 “Recreational vehicle” means a vehicle such as a motor home, pickup truck with attached camper, and bus when used exclusively for personal pleasure by an individual. In order to qualify as a recreational vehicle, the vehicle shall not be used in connection with any business endeavor.

SEC. 19.

 Section 8651.7 of the Revenue and Taxation Code is amended to read:

8651.7.
 (a)   The owner or operator, except an interstate user, of a vehicle propelled by a system using liquefied petroleum gas, dimethyl ether-liquefied petroleum gas fuel blend,  liquid natural gas, or  compressed natural gas, or dimethyl ether  gas  may pay the fuel tax for the use of those fuels by paying an annual flat rate fuel tax according to the following schedule:  
Unladen weight
Fee
Unladen weight
Fee
 All passenger cars and other vehicles 4,000 lbs. or less   ........................
$ 36  
 More than 4,000 lbs. but less than 8,001 lbs.   ........................
 72  
 More than 8,000 lbs. but less than 12,001 lbs.   ........................
 120  
 12,001 lbs. or more   ........................
 168  
(b)   The annual flat rate fuel tax described in subdivision (a) shall be an annual tax. The annual period shall be that period from the end of the month in which the tax was paid to the end of the month prior in the following calendar year. When an owner or operator elects to pay the annual flat rate fuel tax on more than one vehicle, the owner or operator may request that the department prorate the tax due on a vehicle added during the annual period, so that all vehicles have the same annual period. In the year a vehicle is added, the annual flat rate fuel tax for that vehicle shall be calculated by dividing the fee set forth in subdivision (a) by 12 and multiplying the resulting amount by the number of months remaining before the beginning of the next annual period. 
(c)   The department board  shall adopt an identification procedure for vehicles with respect to which the annual flat rate tax described in subdivision (a) of this section has been paid.  
(d) Subdivision (a) shall not apply to dimethyl ether-liquefied petroleum gas fuel blend or dimethyl ether until July 1, 2021.

SEC. 20.

 Chapter 2.5 (commencing with Section 8691) is added to Part 3 of Division 2 of the Revenue and Taxation Code, to read:

CHAPTER  2.5. International Fuel Tax Agreement
8691.
 Effective on and after January 1, 1996, Chapter 2 (commencing with Section 9405) of Part 3.5 shall apply to all interstate users.

SEC. 21.

 Section 8701 of the Revenue and Taxation Code is amended to read:

8701.
 Every person desiring to become a user of fuel within this state shall secure a use fuel tax permit.

SEC. 22.

 Section 8708 of the Revenue and Taxation Code is amended to read:

8708.
 The board or its authorized representative may issue a California fuel trip permit to interstate users for entry into this state. The California may authorize the issuance of use fuel trip permits to holders of trip permits issued under Section 4004 of the Vehicle Code. The use  fuel trip permit shall be valid for four consecutive days and includes any reentry into the state during the four-day period.  the same period as the trip permit issued under Section 4004 of the Vehicle Code.  The fee for issuance of a California use  fuel trip permit is thirty dollars ($30). Other provisions of this article and Article 1 (commencing with Section 8751) of Chapter 4 do not apply to the holder of a California use  fuel trip permit who uses only fuel brought into this state in the fuel tank of a qualified motor vehicle and fuel purchased from, and delivered into the fuel tank of the qualified motor vehicle by, a vendor. Any use fuel tax paid to a vendor for fuel taken out of the state in the fuel tank of a qualified motor vehicle operated under a California use  fuel trip permit shall not be refunded to the holder of the permit, notwithstanding any other provisions of this part.
The board may deny the issuance of more than one use fuel trip permit for an interstate user of fuel determined by the board to bring qualified motor vehicles into this state on a regular, ongoing basis. The board shall maintain a file of all use fuel trip permits issued under this section for the purpose of determining the effectiveness of the program and the appropriateness of the fee. The board may  enter into an interagency agreement with the Department of Motor Vehicles providing for the issuance of California use  fuel trip permits by that department.

SEC. 23.

 Section 8751 of the Revenue and Taxation Code is amended to read:

8751.
 The excise tax imposed by this part is due and payable quarterly on or before the last day of the calendar month next succeeding each quarterly period in which a taxable use of fuel occurs.

SEC. 24.

 Section 8752 of the Revenue and Taxation Code is amended to read:

8752.
 (a)   Except as provided in subdivision (b), on or before the last day of the calendar month following each quarterly period, every user shall, except as otherwise provided in Section 8608, file with  on forms prescribed by  the board a return in the form as prescribed by the board, which may include, but not be limited to, electronic media  showing the amount of any tax due and any other information as the board may require to carry out the purposes of this part. Returns shall be authenticated in a form or pursuant to methods as may be prescribed by the board. 
(b)   This section shall not be applicable to any user whose sole use of fuel subject to the tax imposed by this part is for the propulsion of a privately operated passenger automobile, provided that the fuel used in this state, except fuel brought into this state in the fuel tank of the vehicle, is purchased from and delivered into the fuel tank of the vehicle by a vendor holding a permit issued under this part.  

SEC. 25.

 Section 8755 of the Revenue and Taxation Code is amended to read:

8755.
 The board, if it deems it necessary in order to ensure payment of the tax imposed by this part, or to facilitate the administration of this part, may require returns and payment of the tax to be made for designated periods other than quarterly periods. On or before the last day of the calendar month following each designated period, a return for the preceding designated period shall be filed with the board in any form as the board may prescribe.

SEC. 26.

 Section 8777 of the Revenue and Taxation Code is amended to read:

8777.
 The amount of the determination, exclusive of penalties, shall bear interest at the modified adjusted rate per month, or fraction thereof, established pursuant to Section 6591.5, from the last day of the calendar month following the reporting period for which the amount of the tax, or any portion thereof, should have been reported until the date of payment.

SEC. 26.5.

 Section 8777 of the Revenue and Taxation Code is amended to read:

8777.
 The amount of the determination, exclusive of penalties, shall bear interest at the modified adjusted rate per month, or fraction thereof,  annum  established pursuant to Section 6591.5, from the last day of the calendar month following the reporting period for which the amount of the tax, or any portion thereof, should have been reported until the date of payment.

SEC. 27.

 Section 8782 of the Revenue and Taxation Code is amended to read:

8782.
 Except in the case of fraud, intent to evade the tax, or failure to make a return, every notice of a deficiency determination shall be served given  within three years after the last day of the calendar month following the period for which the return was due or within three years after the return is filed, whichever period expires later. If the user fails to make a return, the notice of determination shall be served mailed  within eight years after the last day of the month following the period for which the return was due.

SEC. 28.

 Section 8803 of the Revenue and Taxation Code is amended to read:

8803.
 The amount of the determination, exclusive of penalties, shall bear interest at the modified adjusted rate per month, or fraction thereof, established pursuant to Section 6591.5, from the last day of the calendar month following the reporting period for which the amount, or any portion thereof, should have been reported until the date of payment.

SEC. 28.5.

 Section 8803 of the Revenue and Taxation Code is amended to read:

8803.
 The amount of the determination, exclusive of penalties, shall bear interest at the modified adjusted rate per month, or fraction thereof,  annum  established pursuant to Section 6591.5, from the last day of the calendar month following the reporting period for which the amount, or any portion thereof, should have been reported until the date of payment.

SEC. 29.

 Section 8876 of the Revenue and Taxation Code is amended to read:

8876.
 (a)  Any user who fails to pay any tax, except taxes determined by the board under Article 2 (commencing with Section 8776) or Article 3 (commencing with Section 8801), within the time required shall pay a penalty of 10 percent of the amount of the tax,  tax or fifty dollars ($50), whichever is greater,  together with interest on that tax at the modified adjusted rate per month, or fraction thereof, established pursuant to Section 6591.5, from the date on which the tax became due and payable until the date of payment.
(b) Any user who fails to file a return in accordance with the due date set forth in Section 8751 or the due date established by the board in accordance with Section 8755, shall pay a penalty of 10 percent of the amount of the tax with respect to the period for which the return is required.
(c) The penalties imposed by this section shall be limited to a maximum of 10 percent of the tax for which the return is required for any one return.

SEC. 29.5.

 Section 8876 of the Revenue and Taxation Code is amended to read:

8876.
 (a)  Any user who fails to pay any tax, except taxes determined by the board under Article 2 (commencing with Section 8776) or Article 3 (commencing with Section 8801), within the time required shall pay a penalty of 10 percent of the amount of the tax,  tax or fifty dollars ($50), whichever is greater,  together with interest on that tax at the modified adjusted rate per month, or fraction thereof,  annum  established pursuant to Section 6591.5, from the date on which the tax became due and payable until the date of payment.
(b) Any user who fails to file a return in accordance with the due date set forth in Section 8751 or the due date established by the board in accordance with Section 8755, shall pay a penalty of 10 percent of the amount of the tax with respect to the period for which the return is required.
(c) The penalties imposed by this section shall be limited to a maximum of 10 percent of the tax for which the return is required for any one return.

SEC. 30.

 Section 9152 of the Revenue and Taxation Code is amended to read:

9152.
 (a)   Except as provided in subdivision (b), no refund shall be approved by the board after three years from the last day of the month following the reporting period for which the overpayment was made, or, with respect to determinations made under Article 2 (commencing with Section 8776), Article 3 (commencing with Section 8801), or Article 4 (commencing with Section 8826) of Chapter 4, after six months from the date the determinations became final, or after six months from the date of overpayment, whichever period expires later, unless a claim therefor is filed with the board within that period. No credit shall be approved by the board after the expiration of that period unless a claim for credit is filed with the board within that period or unless the claim relates to a period for which a waiver has been given pursuant to Section 8783.  
(b)   A refund may be approved by the board for any period for which a waiver is given under Section 8783 if a claim therefor is filed with the board before the expiration of the period agreed upon.  

SEC. 31.

 Section 9155 of the Revenue and Taxation Code is amended to read:

9155.
 Interest shall be paid upon any overpayment of any amount of tax at the modified adjusted rate per month established pursuant to Section 6591.5 from the first day of the calendar month following the period during which the overpayment was made. In addition, a refund or credit shall be made of any interest imposed upon the person making the overpayment with respect to the amount being refunded or credited.
The interest shall be paid as follows:
(a)   In the case of a refund, to the last day of the calendar month following the date upon which the person making the overpayment, if he or she has not already filed a claim, is notified by the board that a claim may be filed or the date upon which the claim is approved by the board, whichever date is earlier.  
(b)   In the case of a credit, to the same date as that to which interest is computed on the tax or amount against which the credit is applied.  

SEC. 31.5.

 Section 9155 of the Revenue and Taxation Code is amended to read:

9155.
 Interest shall be paid upon any overpayment of any amount of tax at the modified adjusted rate per month annum  established pursuant to Section 6591.5 from the first day of the calendar month following the period during which the overpayment was made. In addition, a refund or credit shall be made of any interest imposed upon the person making the overpayment with respect to the amount being refunded or credited.
The interest shall be paid as follows:
(a)   In the case of a refund, to the last day of the calendar month following the date upon which the person making the overpayment, if he or she has not already filed a claim, is notified by the board that a claim may be filed or the date upon which the claim is approved by the board, whichever date is the  earlier.  
(b)   In the case of a credit, to the same date as that to which interest is computed on the tax or amount against which the credit is applied.  

SEC. 32.

 Section 9174 of the Revenue and Taxation Code is amended to read:

9174.
 If judgment is rendered for the plaintiff, the amount of the judgment shall first be credited on any amounts due from the plaintiff under this part, Part 2 (commencing with Section 7301), and Part 31 (commencing with Section 60001), and the balance of the judgment shall be refunded to the plaintiff. In any judgment, interest shall be allowed at the modified adjusted rate per annum established pursuant to Section 6591.5 upon the amount found to have been illegally collected from the date of payment of the amount to the date of allowance of credit on account of the judgment or to a date preceding the date of the refund warrant by not more than 30 days, the date to be determined by the board.

SEC. 33.

 Section 9269 of the Revenue and Taxation Code is amended to read:

9269.
 (a)   Every taxpayer is entitled to be reimbursed for any reasonable fees and expenses related to a hearing before the board if all of the following conditions are met:  
(1)   The taxpayer files a claim for the fee and expenses with the board within one year of the date the decision of the board becomes final. board.  
(2)   The board, in its sole discretion, finds that the action taken by the board staff was unreasonable.  
(3)   The board decides that the taxpayer be awarded a specific amount of fees and expenses related to the hearing, in an amount which shall be  determined by the board in its sole discretion. board.  
(b)   To determine whether the board staff has been unreasonable, the board shall consider whether the board staff  taxpayer  has established that its position was  the position of the board staff was not  substantially justified.  
(c)   The amount of reimbursed fees and expenses shall be limited to the following:  
(1)   Fees and expenses incurred after the date of the notice of determination, jeopardy determination, or a claim for refund. filing petitions for redetermination and claims for refund.  
(2)   If the board finds that the staff was unreasonable with respect to certain issues but reasonable with respect to other issues, the amount of reimbursed fees and expenses shall be limited to those that relate to the issues where the staff was unreasonable.  
(d)   Any proposed award by the board pursuant to subdivision (a) shall be available as a public record for at least 10 days prior to the effective date of the award.  
(e) The amendments to this section by the act adding this subdivision shall be operative for claims filed on or after January 1, 2000.

SEC. 34.

 Section 9272 of the Revenue and Taxation Code is amended to read:

9272.
 (a)   The California Department of Tax and Fee Administration  board  shall release any levy or notice to withhold issued pursuant to this part on any property in the event that the expense of the sale process exceeds the liability for which the levy is made.  
(b)   (1)  (A)  The Taxpayers’ Rights Advocate may order the release of any levy or notice to withhold issued pursuant to this part or, within 90 days from the receipt of funds pursuant to a levy or notice to withhold, order the return of any amount up to two one  thousand three five  hundred dollars ($2,300) ($1,500)  of moneys received, upon his or her finding that the levy or notice to withhold threatens the health or welfare of the taxpayer or his or her spouse and dependents or family.  
(B) The amount the Taxpayers’ Rights Advocate may return to each taxpayer subject to a levy or notice to withhold, is limited to two thousand three hundred dollars ($2,300), or the adjusted amount as specified in paragraph (2), in any monthly period.
(C) The Taxpayers’ Rights Advocate may order amounts returned in the case of a seizure of property as a result of a jeopardy determination, subject to the amounts set or adjusted pursuant to this section and if the ultimate collection of the amount due is no longer in jeopardy.
(2) (A) The California Department of Tax and Fee Administration shall adjust the two-thousand-three-hundred-dollar ($2,300) amount specified in paragraph (1) as follows:
(i) On or before March 1, 2016, and on or before March 1 each year thereafter, the California Department of Tax and Fee Administration shall multiply the amount applicable for the current fiscal year by the inflation factor adjustment calculated based on the percentage change in the Consumer Price Index, as recorded by the California Department of Industrial Relations for the most recent year available, and the formula set forth in paragraph (2) of subdivision (h) of Section 17041. The resulting amount will be the applicable amount for the succeeding fiscal year only when the applicable amount computed is equal to or exceeds a new operative threshold, as defined in subparagraph (B).
(ii) When the applicable amount equals or exceeds an operative threshold specified in subparagraph (B), the resulting applicable amount, rounded to the nearest multiple of one hundred dollars ($100), shall be operative for purposes of paragraph (1) beginning July 1 of the succeeding fiscal year.
(B) For purposes of this paragraph, “operative threshold” means an amount that exceeds by at least one hundred dollars ($100) the greater of either the amount specified in paragraph (1) or the amount computed pursuant to subparagraph (A) as the operative adjustment to the amount specified in paragraph (1).
(c)   The California Department of Tax and Fee Administration  board  shall not sell any seized property until it has first notified the taxpayer in writing of the exemptions from levy under Chapter 4 (commencing with Section 703.010) of Division 2 of Title 9 of Part 2 of the Code of Civil Procedure.  
(d) Except   as provided in subparagraph (C) of paragraph (1) of subdivision (b), this  This  section shall not apply to the seizure of any property as a result of a jeopardy determination. assessment.  

SEC. 35.

 Section 9354.5 of the Revenue and Taxation Code is amended to read:

9354.5.
 Notwithstanding any other provision of this part, any person who violates this part with intent to defeat or evade the determination of an amount due required by law to be made is guilty of a felony when the amount of tax liability aggregates twenty-five thousand dollars ($25,000) or more in any 12-consecutive-month period. The determination shall be approved by the executive director or his or her designee. Each offense shall be punished by a fine of not less than five thousand dollars ($5,000) and not more than twenty thousand dollars ($20,000), or imprisonment for 16 months, two years, or three years, or by both the fine and imprisonment in the discretion of the court.

SEC. 36.

 A chapter heading is added to Part 3.5 (commencing with Section 9401) of Division 2 of the Revenue and Taxation Code, immediately preceding Section 9401 thereof, to read:

CHAPTER  1. Fuel Tax Agreements

SEC. 37.

 Section 9401 of the Revenue and Taxation Code is amended to read:

9401.
 The board, with the approval of the Department of Finance, may on behalf of the state become a party to a reciprocal fuel tax agreement between this state and another jurisdiction, or an agency thereof that is authorized to enter into an agreement, providing for the administration, collection, and enforcement by a party to the agreement of the taxes imposed upon motor fuels by another jurisdiction, and for the forwarding of collections to the jurisdiction on behalf of which the tax was collected.
For purposes of this section, “taxes imposed upon motor fuels” means the taxes imposed by this state pursuant to Part 3 (commencing with Section 8601) or Part 31 (commencing with Section 60001), and taxes of a similar nature imposed upon any motor fuels by another jurisdiction under its laws.
For purposes of this section, a “jurisdiction” is this state, any other state, the District of Columbia, a province or territory of Canada, or any governmental entity, which is a party to a reciprocal fuel tax agreement authorized by this section.
The board may adopt and enforce regulations necessary to implement the terms of a reciprocal fuel tax agreement to which the board is a party.

SEC. 38.

 Chapter 2 (commencing with Section 9405) is added to Part 3.5 of Division 2 of the Revenue and Taxation Code, to read:

CHAPTER  2. The International Fuel Tax Agreement
Article  1. Construction
9405.
 This chapter shall be administered in conjunction with the IFTA Articles of Agreement, the Use Fuel Tax Law (Part 3 (commencing with Section 8601)), and the Diesel Fuel Tax Law (Part 31 (commencing with 60001)). Whenever the Use Fuel Tax Law or the Diesel Fuel Tax Law is inconsistent with the IFTA Articles of Agreement or this chapter, the IFTA Articles of Agreement or this chapter shall prevail except where prohibited by the California or United States Constitution.
9407.
 (a)  The International Fuel Tax Agreement, for the purposes of this chapter, may be used to:
(1)  Determine the base state jurisdiction for motor carriers engaged in interstate commerce.
(2)  Impose recordkeeping requirements.
(3)  Specify audit procedures.
(4)  Establish procedures for the exchange of information.
(5)  Identify interstate motor carriers.
(6)  Define motor vehicles and fuels subject to the provisions of the agreement.
(7)  Determine bond requirements.
(8)  Specify reporting requirements, due dates of returns, interest and penalty rates, and provisions for failure to file returns.
(9)  Specify methods for collection of taxes, interest, and penalties.
(10)  Determine methods for the distribution of taxes and interest collected or assessed to the appropriate jurisdictions.
(11)  Deny, suspend, or cancel benefits under the agreement to any interstate motor carrier who violates the provisions of the agreement.
(b)  The board may adopt regulations to administer the provisions of this chapter.
Article  2. Definitions
9410.
 “Contractor” includes a subcontractor.
9411.
 “IFTA” means the International Fuel Tax Agreement.
Article  3. Annual Fees
9420.
 Except for trip permits as provided in Sections 8708 and 60122, all interstate users who choose to obtain an IFTA permit from the board shall apply for a license and secure decals for their vehicles. Application for the license and decals shall be made annually on forms prescribed by the board. The application shall be under oath and shall contain that information as the board deems necessary. Upon receipt of the application, and upon payment of any required reinstatement fee, the board may issue to the applicant a license and decals.
The decals issued to the interstate user shall be placed on both exterior sides of the vehicle cab. Failure to display the decals in the required location may subject the interstate user to the purchase of a trip permit. The transfer of decals from one interstate user to another interstate user is prohibited. All decals shall remain the property of the state and may be recalled for any violation of the provisions of the IFTA Articles of Agreement.
A fee to be determined by the board shall be charged for the annual license and a set of two decals issued prior to and during the calendar year that the license and decal is valid. The board may also prescribe procedures and set a fee for the issuance of a 30-day IFTA temporary license or replacement decals.
Article  4. Administration
9425.
 The exemptions in Chapter 2 (commencing with Section 8651) of Part 3 do not apply to IFTA-required returns. However, the exempt use shall be refunded under the refund provisions in Chapter 6 (commencing with Section 9151) of Part 3.
Article  5. IFTA Disclosure
9430.
 (a)  The board shall make available any and all information obtained under this chapter to any member jurisdiction of the IFTA, a designee of the member jurisdiction, or any contractor under contract with the board. The information obtained by the member jurisdiction, designee, or contractor shall not be made public except to the extent authorized by the agreement.
(b)  The member jurisdictions of the IFTA and the board may utilize any information obtained pursuant to this chapter to develop data on international or interstate commerce, fuel consumption, and any aspect of motor fuel tax administration.
Article  6. Distribution of Proceeds
9432.
 The board shall transmit all moneys received by it under this chapter to the Treasurer to be deposited in the State Treasury. The board in accordance with the Treasurer shall set up a reserve account in the State Treasury to disburse those moneys as needed. After distribution payments to other jurisdictions and refunds authorized by the IFTA Articles of Agreement, the balance remaining in the reserve account shall be transferred, except as provided in Section 9433, to the Motor Vehicle Fuel Account in the Transportation Tax Fund.
9433.
 The fees paid for licenses and decals issued under Section 9420 shall be deposited in a reserve account in the State Treasury and shall, upon appropriation by the Legislature, be used for administration of the IFTA program.

SEC. 39.

 Section 9501 of the Revenue and Taxation Code is amended to read:

9501.
 (a)   Except as specified in subdivision (c), in addition to taxes imposed pursuant to Chapter 5 (commencing with Section 99500) of Part 11 of Division 10 of the Public Utilities Code, Part 2 (commencing with Section 7301), Part 3 (commencing with Section 8601), and Part 31 (commencing with Section 60001) of this division, on motor vehicle fuel, a tax may be imposed by a county on a countywide basis in accordance with this part.  
(b)   The tax shall be imposed in increments of one cent ($0.01) per gallon or, in the case of compressed natural gas, one cent ($0.01) per 100 cubic feet as measured at standard pressure and temperature.  
(c)   No tax shall be imposed under this part on fuel used in propelling an aircraft or a vessel.  

SEC. 40.

 Section 9506 of the Revenue and Taxation Code is amended to read:

9506.
 The ordinance shall include provisions identical to those contained in Part 2 (commencing with Section 7301), Part 3 (commencing with Section 8601), and Part 31 (commencing with Section 60001), except that the name of the county as the taxing agency shall be substituted for that of the state.

SEC. 41.

 Section 30103.5 is added to the Revenue and Taxation Code, to read:

30103.5.
 (a)  The tax and surcharge imposed by this part shall not apply to the sale or transfer of untaxed cigarettes to a law enforcement agency for use in a criminal investigation when that sale or transfer is authorized by the board.
(b)  A law enforcement agency authorized by the board to receive or purchase cigarettes as provided in subdivision (a) shall not be required to apply for, or obtain, a license as a distributor pursuant to Section 30140.
(c)  A law enforcement agency making distributions of cigarettes received or purchased under subdivision (a) is not required to collect or remit the tax or surcharge imposed by this part with respect to those authorized distributions.

SEC. 42.

 Section 30437 of the Revenue and Taxation Code is amended to read:

30437.
 Notice of the seizure and forfeiture of the property described in Section 30436 shall be given by the board as follows:
(a)   Notice shall be given by personal service or by certified registered  mail to all persons known by the board to have any right, title or interest in the property.  
(b)   (1)   Except as provided in paragraph (2), the board shall include a  2,  notice of seizure and forfeiture on its Web site for a period of six months from the notice of seizure. shall be given by one publication in a newspaper of general circulation in the county where the seizure was made as follows:  
(A)  To all persons unknown by the board who may have a right, title, or interest in the property.
(B)  To all persons known by the board to have a right, title, or interest in the property but who cannot be found.
(2)   Web site notification  Newspaper publication  is not required when the amount of cigarettes seized is less than 61 cartons of 200 cigarettes each or an equivalent amount of tobacco products.  
(c)   Notice shall include a description of the property, the reason for the seizure, and the time and place of the seizure.  

SEC. 43.

 Section 30458.9 of the Revenue and Taxation Code is amended to read:

30458.9.
 (a)   Every taxpayer is entitled to be reimbursed for any reasonable fees and expenses related to a hearing before the board if all of the following conditions are met:  
(1)   The taxpayer files a claim for the fees and expenses with the board within one year of the date the decision of the board becomes final. board.  
(2)   The board, in its sole discretion, finds that the action taken by the board staff was unreasonable.  
(3)   The board decides that the taxpayer be awarded a specific amount of fees and expenses related to the hearing, in an amount which shall be  determined by the board in its sole discretion. board.  
(b)   To determine whether the board staff has been unreasonable, the board shall consider whether the board staff  taxpayer  has established that its position was  the position of the board staff was not  substantially justified.  
(c)   The amount of reimbursed fees and expenses shall be limited to the following:  
(1)   Fees and expenses incurred after the date of the notice of determination, jeopardy determination, or a claim for refund. filing petitions for redetermination and claims for refund.  
(2)   If the board finds that the staff was unreasonable with respect to certain issues but reasonable with respect to other issues, the amount of reimbursed fees and expenses shall be limited to those that relate to the issues where the state was unreasonable.  
(d)   Any proposed award by the board pursuant to subdivision (a) shall be available as a public record for at least 10 days prior to the effective date of the award.  
(e) The amendments to this section by the act adding this subdivision shall be operative for claims filed on or after January 1, 2000.

SEC. 44.

 Section 30480 of the Revenue and Taxation Code is amended to read:

30480.
 Notwithstanding any other provision of this part, any person who violates this part with intent to defeat or evade the determination of an amount due required by law to be made is guilty of a felony when the amount of tax liability aggregates twenty-five thousand dollars ($25,000) or more in any 12-consecutive-month period. The determination shall be approved by the executive director or his or her designee. Each offense shall be punished by a fine of not less than five thousand dollars ($5,000) and not more than twenty thousand dollars ($20,000), or imprisonment for 16 months, two years, or three years, or by both the fine and imprisonment in the discretion of the court.

SEC. 45.

 Section 32176 of the Revenue and Taxation Code is amended to read:

32176.
 (a)   If taxes have been paid on beer or wine subsequently exported from the state or sold for export and actually thereafter exported from this state, or on beer or wine subsequently destroyed under the supervision of a board representative, a taxpayer may claim and shall be allowed credit with respect to the taxes in any report filed or assessment made under this part.  
(b)   A beer manufacturer located in this state may claim and shall be allowed a credit for excise taxes paid on tax paid beer returned by a licensed wholesaler and subsequently destroyed by the beer manufacturer under the supervision of a board representative. The credit shall be allowed only if the beer manufacturer has credited the licensed wholesaler the amount of the tax. If the credit is allowed to the beer manufacturer, a credit shall not be allowed to the licensed wholesaler with respect to the destruction of the same product.  
(c)   A winegrower may claim credit with respect to excise taxes on wine purchased state tax paid from another winegrower and subsequently exported or sold for export and actually exported.  
(d)   A beer manufacturer or a beer and wine wholesaler may claim credit for excise taxes on beer purchased state tax paid and subsequently exported or sold for export and actually exported.  

SEC. 46.

 Section 32251.5 of the Revenue and Taxation Code is amended to read:

32251.5.
 The board, if it deems it necessary in order to facilitate the collection of the amount of taxes, may require returns and payment of the amount of taxes for quarterly or annual periods depending on the principal place of business of the taxpayer, the amount of business done by the taxpayer, or the amount of taxes normally paid or payable by the taxpayer.

SEC. 47.

 Section 32401 of the Revenue and Taxation Code is amended to read:

32401.
 If the board determines that any amount of tax, penalty, or interest has been paid more than once or has been erroneously or illegally collected or computed, the board shall set forth that fact in its records and certify the amount collected in excess of what was legally due and the person from whom it was collected or by whom paid, and credit the excess amount collected or paid on any amounts then due from the person from whom the excess amount was collected or by whom it was paid under this part, and the balance shall be refunded to the person, or the person’s  his or her  successors, administrators, or executors. Any proposed  determination by the board pursuant to this section with respect to an amount in excess of fifty thousand dollars ($50,000) shall be available as a public record for at least 10 days after  prior to  the effective date of that determination.

SEC. 48.

 Section 32469 of the Revenue and Taxation Code is amended to read:

32469.
 (a)   Every taxpayer is entitled to be reimbursed for any reasonable fees and expenses related to a hearing before the board if all of the following conditions are met:  
(1)   The taxpayer files a claim for the fee and expenses with the board within one year of the date the decision of the board becomes final. board.  
(2)   The board, in its sole discretion, finds that the action taken by the board staff was unreasonable.  
(3)   The board decides that the taxpayer be awarded a specific amount of fees and expenses related to the hearing, in an amount which shall be  determined by the board in its sole discretion. board.  
(b)   To determine whether the board staff has been unreasonable, the board shall consider whether the board staff  taxpayer  has established that its position was  the position of the board staff was not  substantially justified.  
(c)   The amount of reimbursed fees and expenses shall be limited to the following:  
(1)   Fees and expenses incurred after the date of the notice of determination, jeopardy determination, or a claim for refund. filing petitions for redetermination and claims for refund.  
(2)   If the board finds that the staff was unreasonable with respect to certain issues but reasonable with respect to other issues, the amount of reimbursed fees and expenses shall be limited to those that relate to the issues where the staff was unreasonable.  
(d)   Any proposed award by the board pursuant to subdivision (a) shall be available as a public record for at least 10 days prior to the effective date of the award.  
(e) The amendments to this section by the act adding this subdivision shall be operative for claims filed on or after January 1, 2000.

SEC. 49.

 Section 32472 of the Revenue and Taxation Code is amended to read:

32472.
 (a)   The State Board of Equalization  board  shall release any levy or notice to withhold issued pursuant to this part on any property in the event that the expense of the sale process exceeds the liability for which the levy is made.  
(b)   (1)  (A)  The Taxpayers’ Rights Advocate may order the release of any levy or notice to withhold issued pursuant to this part or, within 90 days from the receipt of funds pursuant to a levy or notice to withhold, order the return of any amount up to two one  thousand three five  hundred dollars ($2,300) ($1,500)  of moneys received, upon his or her finding that the levy or notice to withhold threatens the health or welfare of the taxpayer or his or her spouse and dependents or family.  
(B) The amount the Taxpayers’ Rights Advocate may return to each taxpayer subject to a levy or notice to withhold, is limited to two thousand three hundred dollars ($2,300), or the adjusted amount as specified in paragraph (2), in any monthly period.
(C) The Taxpayers’ Rights Advocate may order amounts returned in the case of a seizure of property as a result of a jeopardy determination, subject to the amounts set or adjusted pursuant to this section and if the ultimate collection of the amount due is no longer in jeopardy.
(2) (A) The State Board of Equalization shall adjust the two-thousand-three-hundred-dollar ($2,300) amount specified in paragraph (1) as follows:
(i) On or before March 1, 2016, and on or before March 1 each year thereafter, the State Board of Equalization shall multiply the amount applicable for the current fiscal year by the inflation factor adjustment calculated based on the percentage change in the Consumer Price Index, as recorded by the California Department of Industrial Relations for the most recent year available, and the formula set forth in paragraph (2) of subdivision (h) of Section 17041. The resulting amount will be the applicable amount for the succeeding fiscal year only when the applicable amount computed is equal to or exceeds a new operative threshold, as defined in subparagraph (B).
(ii) When the applicable amount equals or exceeds an operative threshold specified in subparagraph (B), the resulting applicable amount, rounded to the nearest multiple of one hundred dollars ($100), shall be operative for purposes of paragraph (1) beginning July 1 of the succeeding fiscal year.
(B) For purposes of this paragraph, “operative threshold” means an amount that exceeds by at least one hundred dollars ($100) the greater of either the amount specified in paragraph (1) or the amount computed pursuant to subparagraph (A) as the operative adjustment to the amount specified in paragraph (1).
(c)   The State Board of Equalization  board  shall not sell any seized property until it has first notified the taxpayer in writing of the exemptions from levy under Chapter 4 (commencing with Section 703.010) of Division 2 of Title 9 of Part 2 of the Code of Civil Procedure.  
(d) Except   as provided in subparagraph (C) of paragraph (1) of subdivision (b), this  This  section shall not apply to the seizure of any property as a result of a jeopardy determination. assessment.  

SEC. 50.

 Section 40111 of the Revenue and Taxation Code is amended to read:

40111.
 (a)   If the department board  determines that any amount, penalty, or interest has been paid more than once or has been erroneously or illegally collected or computed, the department board  shall set forth that fact in the records of the department, board,  certify the amount collected in excess of the amount legally due and the person from whom it was collected or by whom paid, and shall credit the excess amount collected or paid on any amounts then due and payable from the person from whom the excess amount was collected or by whom it was paid under this part, and the balance shall be refunded to the person, or the person’s  his or her  successors, administrators, or executors. Any proposed  determination by the department board  pursuant to this section with respect to an amount in excess of fifty thousand dollars ($50,000) shall be available as a public record for at least 10 days after  prior to  the effective date of that determination.  
(b)   Any overpayment of the surcharge by a consumer to the state shall be credited or refunded by the state to the consumer.  
(c)   (1)   Except as provided in paragraph (2), any overpayment of the surcharge by the consumer to an electric utility that is required to collect the surcharge shall be refunded by the state to the consumer.  
(2)   If the electric utility has paid the amount to the department board  and establishes to the satisfaction of the department board  that it has not collected the amount from the consumer or has refunded the amount to the consumer, the overpayment may be credited or refunded by the state to the electric utility.  

SEC. 51.

 Section 40187 of the Revenue and Taxation Code is amended to read:

40187.
 Notwithstanding any other provision of this part, any person who violates this part with intent to defeat or evade the determination of an amount due required by law to be made is guilty of a felony when the amount of tax liability aggregates twenty-five thousand dollars ($25,000) or more in any 12-consecutive-month period. The determination shall be approved by the executive director or his or her designee. Each offense shall be punished by a fine of not less than five thousand dollars ($5,000) and not more than twenty thousand dollars ($20,000), or imprisonment for 16 months, two years, or three years, or by both the fine and imprisonment in the discretion of the court.

SEC. 52.

 Section 40209 of the Revenue and Taxation Code is amended to read:

40209.
 (a)   Every taxpayer is entitled to be reimbursed for any reasonable fees and expenses related to a hearing before the board if all of the following conditions are met:  
(1)   The taxpayer files a claim for the fee and expenses with the board within one year of the date the decision of the board becomes final. board.  
(2)   The board, in its sole discretion, finds that the action taken by the board staff was unreasonable.  
(3)   The board decides that the taxpayer be awarded a specific amount of fees and expenses related to the hearing, in an amount which shall be  determined by the board in its sole discretion. board.  
(b)   To determine whether the board staff has been unreasonable, the board shall consider whether the board staff  taxpayer  has established that its position was  the position of the board staff was not  substantially justified.  
(c)   The amount of reimbursed fees and expenses shall be limited to the following:  
(1)   Fees and expenses incurred after the date of the notice of determination, jeopardy determination, or a claim for refund. filing petitions for redetermination and claims for refund.  
(2)   If the board finds that the staff was unreasonable with respect to certain issues but reasonable with respect to other issues, the amount of reimbursed fees and expenses shall be limited to those that relate to the issues where the staff was unreasonable.  
(d)   Any proposed award by the board pursuant to subdivision (a) shall be available as a public record for at least 10 days prior to the effective date of the award.  
(e) The amendments to this section by the act adding this subdivision shall be operative for claims filed on or after January 1, 2000.

SEC. 53.

 Section 40212 of the Revenue and Taxation Code is amended to read:

40212.
 (a)   The California Department of Tax and Fee Administration  board  shall release any levy or notice to withhold issued pursuant to this part on any property in the event that the expense of the sale process exceeds the liability for which the levy is made.  
(b)   (1)  (A)  The Taxpayers’ Rights Advocate may order the release of any levy or notice to withhold issued pursuant to this part or, within 90 days from the receipt of funds pursuant to a levy or notice to withhold, order the return of any amount up to two one  thousand three five  hundred dollars ($2,300) ($1,500)  of moneys received, upon his or her finding that the levy or notice to withhold threatens the health or welfare of the taxpayer or his or her spouse and dependents or family.  
(B) The amount the Taxpayers’ Rights Advocate may return to each taxpayer subject to a levy or notice to withhold, is limited to two thousand three hundred dollars ($2,300), or the adjusted amount as specified in paragraph (2), in any monthly period.
(C) The Taxpayers’ Rights Advocate may order amounts returned in the case of a seizure of property as a result of a jeopardy determination, subject to the amounts set or adjusted pursuant to this section and if the ultimate collection of the amount due is no longer in jeopardy.
(2) (A) The California Department of Tax and Fee Administration shall adjust the two-thousand-three-hundred-dollar ($2,300) amount specified in paragraph (1) as follows:
(i) On or before March 1, 2016, and on or before March 1 each year thereafter, the California Department of Tax and Fee Administration shall multiply the amount applicable for the current fiscal year by the inflation factor adjustment calculated based on the percentage change in the Consumer Price Index, as recorded by the California Department of Industrial Relations for the most recent year available, and the formula set forth in paragraph (2) of subdivision (h) of Section 17041. The resulting amount will be the applicable amount for the succeeding fiscal year only when the applicable amount computed is equal to or exceeds a new operative threshold, as defined in subparagraph (B).
(ii) When the applicable amount equals or exceeds an operative threshold specified in subparagraph (B), the resulting applicable amount, rounded to the nearest multiple of one hundred dollars ($100), shall be operative for purposes of paragraph (1) beginning July 1 of the succeeding fiscal year.
(B) For purposes of this paragraph, “operative threshold” means an amount that exceeds by at least one hundred dollars ($100) the greater of either the amount specified in paragraph (1) or the amount computed pursuant to subparagraph (A) as the operative adjustment to the amount specified in paragraph (1).
(c)   The California Department of Tax and Fee Administration  board  shall not sell any seized property until it first has notified the taxpayer in writing of the exemptions from levy under Chapter 4 (commencing with Section 703.010) of Division 2 of Title 9 of Part 2 of the Code of Civil Procedure.  
(d) Except   as provided in subparagraph (C) of paragraph (1) of subdivision (b), this  This  section shall not apply to the seizure of any property as a result of a jeopardy determination. assessment.  

SEC. 54.

 Section 41096 of the Revenue and Taxation Code is amended to read:

41096.
 (a)  If the department board  finds that a person’s failure to make a timely return or payment is due to reasonable cause and circumstances beyond the person’s control, and occurred notwithstanding the exercise of ordinary care and the absence of willful neglect, the person may be relieved of the penalty provided by Sections 41060,  41080, 41090, and 41095.
(b) Any  Except as provided in subdivisions (c) and (d), any    person seeking to be relieved of the penalty shall file with the department board  a statement under penalty of perjury setting forth the facts upon which the person bases the  he or she bases his or her  claim for relief.
(c) (1) Subject to paragraph (2), the department may grant relief of the penalty for any person in an area identified in a state of emergency proclamation made by the Governor for the period the state of emergency proclamation is effective, regardless of whether the person has filed a statement with the department pursuant to subdivision (b).
(2) The department may grant the relief in paragraph (1) only during the first 12 months following the issuance of the state of emergency proclamation or the duration of the state of emergency, whichever is less.
(d) The department shall establish criteria that provide for efficient resolution of requests for relief pursuant to this section.

SEC. 55.

 Section 41143.4 of the Revenue and Taxation Code is amended to read:

41143.4.
 Notwithstanding any other provision of this part, any person who violates this part with intent to defeat or evade the determination of an amount due required by law to be made is guilty of a felony when the amount of tax liability aggregates twenty-five thousand dollars ($25,000) or more in any 12-consecutive-month period. The determination shall be approved by the executive  director or their  his or her  designee. Each offense shall be punished by a fine of not less than five thousand dollars ($5,000) and not more than twenty thousand dollars ($20,000), or imprisonment for 16 months, two years, or three years, or by both the fine and imprisonment in the discretion of the court.

SEC. 56.

 Section 41169 of the Revenue and Taxation Code is amended to read:

41169.
 (a)   Every taxpayer is entitled to be reimbursed for any reasonable fees and expenses related to a hearing before the department board  if all of the following conditions are met:  
(1)   The taxpayer files a claim for the fee and expenses with the department within one year of the date the decision of the department becomes final. board.  
(2)   The department, board,  in its sole discretion, finds that the action taken by the department board  staff was unreasonable.  
(3)   The department board  decides that the taxpayer be awarded a specific amount of fees and expenses related to the hearing, in an amount which shall be  determined by the department in its sole discretion. board.  
(b)   To determine whether the department board  staff has been unreasonable, the department board  shall consider whether the department staff  taxpayer  has established that its position was  the position of the board staff was not  substantially justified.  
(c)   The amount of reimbursed fees and expenses shall be limited to the following:  
(1)   Fees and expenses incurred after the date of the notice of determination, jeopardy determination, or a claim for refund. filing petitions for redetermination and claims for refund.  
(2)   If the department board  finds that the staff was unreasonable with respect to certain issues but reasonable with respect to other issues, the amount of reimbursed fees and expenses shall be limited to those that relate to the issues where the staff was unreasonable.  
(d)   Any proposed award by the department board  pursuant to subdivision (a) shall be available as a public record for at least 10 days prior to the effective date of the award.  
(e) The amendments to this section by the act adding this subdivision shall be operative for claims filed on or after January 1, 2000.

SEC. 57.

 Section 41172 of the Revenue and Taxation Code is amended to read:

41172.
 (a)   The California Department of Tax and Fee Administration  board  shall release any levy or notice to withhold issued pursuant to this part on any property in the event that the expense of the sale process exceeds the liability for which the levy is made.  
(b)   (1)  (A)  The Taxpayers’ Rights Advocate may order the release of any levy or notice to withhold issued pursuant to this part or, within 90 days from the receipt of funds pursuant to a levy or notice to withhold, order the return of any amount up to two one  thousand three five  hundred dollars ($2,300) ($1,500)  of moneys received, upon his or her finding that the levy or notice to withhold threatens the health or welfare of the taxpayer or his or her spouse and dependents or family.  
(B) The amount the Taxpayers’ Rights Advocate may return to each taxpayer subject to a levy or notice to withhold, is limited to two thousand three hundred dollars ($2,300), or the adjusted amount as specified in paragraph (2), in any monthly period.
(C) The Taxpayers’ Rights Advocate may order amounts returned in the case of a seizure of property as a result of a jeopardy determination, subject to the amounts set or adjusted pursuant to this section and if the ultimate collection of the amount due is no longer in jeopardy.
(2) (A) The California Department of Tax and Fee Administration shall adjust the two-thousand-three-hundred-dollar ($2,300) amount specified in paragraph (1) as follows:
(i) On or before March 1, 2016, and on or before March 1 each year thereafter, the California Department of Tax and Fee Administration shall multiply the amount applicable for the current fiscal year by the inflation factor adjustment calculated based on the percentage change in the Consumer Price Index, as recorded by the California Department of Industrial Relations for the most recent year available, and the formula set forth in paragraph (2) of subdivision (h) of Section 17041. The resulting amount will be the applicable amount for the succeeding fiscal year only when the applicable amount computed is equal to or exceeds a new operative threshold, as defined in subparagraph (B).
(ii) When the applicable amount equals or exceeds an operative threshold specified in subparagraph (B), the resulting applicable amount, rounded to the nearest multiple of one hundred dollars ($100), shall be operative for purposes of paragraph (1) beginning July 1 of the succeeding fiscal year.
(B) For purposes of this paragraph, “operative threshold” means an amount that exceeds by at least one hundred dollars ($100) the greater of either the amount specified in paragraph (1) or the amount computed pursuant to subparagraph (A) as the operative adjustment to the amount specified in paragraph (1).
(c)   The California Department of Tax and Fee Administration  board  shall not sell any seized property until it has first notified the taxpayer in writing of the exemptions from levy under Chapter 4 (commencing with Section 703.010) of Division 2 of Title 9 of Part 2 of the Code of Civil Procedure.  
(d) Except   as provided in subparagraph (C) of paragraph (1) of subdivision (b), this  This  section shall not apply to the seizure of any property as a result of a jeopardy determination. assessment.  

SEC. 58.

 Section 43520 of the Revenue and Taxation Code is amended to read:

43520.
 (a)   Every taxpayer is entitled to be reimbursed for any reasonable fees and expenses related to a hearing before the board if all of the following conditions are met:  
(1)   The taxpayer files a claim for the fees and expenses with the board within one year of the date the decision of the board becomes final. board.  
(2)   The board, in its sole discretion, finds that the action taken by the board staff was unreasonable.  
(3)   The board decides that the taxpayer be awarded a specific amount of fees and expenses related to the hearing, in an amount which shall be  determined by the board in its sole discretion. board.  
(b)   To determine whether the board staff has been unreasonable, the board shall consider whether the board staff  taxpayer  has established that its position was  the position of the board staff was not  substantially justified.  
(c)   The amount of reimbursed fees and expenses shall be limited to the following:  
(1)   Fees and expenses incurred after the date of the notice of determination, jeopardy determination, or a claim for refund. filing petitions for redetermination and claims for refund.  
(2)   If the board finds that the staff was unreasonable with respect to certain issues but reasonable with respect to other issues, the amount of reimbursed fees and expenses shall be limited to those that relate to the issues where the staff was unreasonable.  
(d)   Any proposed award by the board pursuant to subdivision (a) shall be available as a public record for at least 10 days prior to the effective date of the award.  
(e) The amendments to this section by the act adding this subdivision shall be operative for claims filed on or after January 1, 2000.

SEC. 59.

 Section 43523 of the Revenue and Taxation Code is amended to read:

43523.
 (a)   The California Department of Tax and Fee Administration  board  shall release any levy or notice to withhold issued pursuant to this part on any property in the event that the expense of the sale process exceeds the liability for which the levy is made.  
(b)   (1)  (A)  The Taxpayers’ Rights Advocate may order the release of any levy or notice to withhold issued pursuant to this part or, within 90 days from the receipt of funds pursuant to a levy or notice to withhold, order the return of any amount up to two one  thousand three five  hundred dollars ($2,300) ($1,500)  of moneys received, upon his or her finding that the levy or notice to withhold threatens the health or welfare of the taxpayer or his or her spouse and dependents or family.  
(B) The amount the Taxpayers’ Rights Advocate may return to each taxpayer subject to a levy or notice to withhold, is limited to two thousand three hundred dollars ($2,300), or the adjusted amount as specified in paragraph (2), in any monthly period.
(C) The Taxpayers’ Rights Advocate may order amounts returned in the case of a seizure of property as a result of a jeopardy determination, subject to the amounts set or adjusted pursuant to this section and if the ultimate collection of the amount due is no longer in jeopardy.
(2) (A) The California Department of Tax and Fee Administration shall adjust the two-thousand-three-hundred-dollar ($2,300) amount specified in paragraph (1) as follows:
(i) On or before March 1, 2016, and on or before March 1 each year thereafter, the California Department of Tax and Fee Administration shall multiply the amount applicable for the current fiscal year by the inflation factor adjustment calculated based on the percentage change in the Consumer Price Index, as recorded by the California Department of Industrial Relations for the most recent year available, and the formula set forth in paragraph (2) of subdivision (h) of Section 17041. The resulting amount will be the applicable amount for the succeeding fiscal year only when the applicable amount computed is equal to or exceeds a new operative threshold, as defined in subparagraph (B).
(ii) When the applicable amount equals or exceeds an operative threshold specified in subparagraph (B), the resulting applicable amount, rounded to the nearest multiple of one hundred dollars ($100), shall be operative for purposes of paragraph (1) beginning July 1 of the succeeding fiscal year.
(B) For purposes of this paragraph, “operative threshold” means an amount that exceeds by at least one hundred dollars ($100) the greater of either the amount specified in paragraph (1) or the amount computed pursuant to subparagraph (A) as the operative adjustment to the amount specified in paragraph (1).
(c)   The California Department of Tax and Fee Administration  board  shall not sell any seized property until it has first notified the taxpayer in writing of the exemptions from levy under Chapter 4 (commencing with Section 703.010) of Division 2 of Title 9 of Part 2 of the Code of Civil Procedure.  
(d) Except   as provided in subparagraph (C) of paragraph (1) of subdivision (b), this  This  section shall not apply to the seizure of any property as a result of a jeopardy determination. assessment.  

SEC. 60.

 Section 45651 of the Revenue and Taxation Code is amended to read:

45651.
 If the department board  determines that any amount of fee, penalty, or interest has been paid more than once or has been erroneously or illegally collected or computed, the department board  shall set forth that fact in its records and certify the amount collected in excess of what was legally due and the person from whom it was collected or by whom paid, and credit the excess amount collected or paid on any amounts then due from the person from whom the excess amount was collected or by whom it was paid under this part, and the balance shall be refunded to the person, or the person’s  his or her  successors, administrators, or executors. Any proposed  determination by the department board  pursuant to this section with respect to an amount in excess of fifty fifteen  thousand dollars ($50,000) ($15,000)  shall be available as a public record for at least 10 days after  prior to  the effective date of that determination.

SEC. 61.

 Section 45865 of the Revenue and Taxation Code is amended to read:

45865.
 (a)   Every fee payer  feepayer  is entitled to be reimbursed for any reasonable fees and expenses related to a hearing before the board if all of the following conditions are met:  
(1)   The fee payer  feepayer  files a claim for the fee and expenses with the board within one year of the date the decision of the board becomes final. board.  
(2)   The board, in its sole discretion, finds that the action taken by the board staff was unreasonable.  
(3)   The board decides that the fee payer  feepayer  be awarded a specific amount of fees and expenses related to the hearing, in an amount which shall be  determined by the board in its sole discretion. board.  
(b)   To determine whether the board staff has been unreasonable, the board shall consider whether the board staff  feepayer  has established that its position was  the position of the board staff was not  substantially justified.  
(c)   The amount of reimbursed fees and expenses shall be limited to the following:  
(1)   Fees and expenses incurred after the date of the notice of determination, jeopardy determination, or a claim for refund. filing petitions for redetermination and claims for refund.  
(2)   If the board finds that the staff was unreasonable with respect to certain issues but reasonable with respect to other issues, the amount of reimbursed fees and expenses shall be limited to those that relate to the issues where the staff was unreasonable.  
(d)   Any proposed award by the board pursuant to subdivision (a) shall be available as a public record for at least 10 days prior to the effective date of the award.  
(e) The amendments to this section by the act adding this subdivision shall be operative for claims filed on or after January 1, 2000.

SEC. 62.

 Section 45868 of the Revenue and Taxation Code is amended to read:

45868.
 (a)   The California Department of Tax and Fee Administration  board  shall release any levy or notice to withhold issued pursuant to this part on any property in the event that the expense of the sale process exceeds the liability for which the levy is made.  
(b)   (1)  (A)  The Taxpayers’ Rights Advocate may order the release of any levy or notice to withhold issued pursuant to this part or, within 90 days from the receipt of funds pursuant to a levy or notice to withhold, order the return of any amount up to two one  thousand three five  hundred dollars ($2,300) ($1,500)  of moneys received, upon his or her finding that the levy or notice to withhold threatens the health or welfare of the feepayer or his or her spouse and dependents or family.  
(B) The amount the Taxpayers’ Rights Advocate may return to each taxpayer subject to a levy or notice to withhold, is limited to two thousand three hundred dollars ($2,300), or the adjusted amount as specified in paragraph (2), in any monthly period.
(C) The Taxpayers’ Rights Advocate may order amounts returned in the case of a seizure of property as a result of a jeopardy determination, subject to the amounts set or adjusted pursuant to this section and if the ultimate collection of the amount due is no longer in jeopardy.
(2) (A) The California Department of Tax and Fee Administration shall adjust the two-thousand-three-hundred-dollar ($2,300) amount specified in paragraph (1) as follows:
(i) On or before March 1, 2016, and on or before March 1 each year thereafter, the California Department of Tax and Fee Administration shall multiply the amount applicable for the current fiscal year by the inflation factor adjustment calculated based on the percentage change in the Consumer Price Index, as recorded by the California Department of Industrial Relations for the most recent year available, and the formula set forth in paragraph (2) of subdivision (h) of Section 17041. The resulting amount will be the applicable amount for the succeeding fiscal year only when the applicable amount computed is equal to or exceeds a new operative threshold, as defined in subparagraph (B).
(ii) When the applicable amount equals or exceeds an operative threshold specified in subparagraph (B), the resulting applicable amount, rounded to the nearest multiple of one hundred dollars ($100), shall be operative for purposes of paragraph (1) beginning July 1 of the succeeding fiscal year.
(B) For purposes of this paragraph, “operative threshold” means an amount that exceeds by at least one hundred dollars ($100) the greater of either the amount specified in paragraph (1) or the amount computed pursuant to subparagraph (A) as the operative adjustment to the amount specified in paragraph (1).
(c)   The California Department of Tax and Fee Administration  board  shall not sell any seized property until it has first notified the feepayer in writing of the exemptions from levy under Chapter 4 (commencing with Section 703.010) of Division 2 of Title 9 of Part 2 of the Code of Civil Procedure.  
(d) Except   as provided in subparagraph (C) of paragraph (1) of subdivision (b), this  This  section shall not apply to the seizure of any property as a result of a jeopardy determination. assessment.  

SEC. 63.

 Section 46501 of the Revenue and Taxation Code is amended to read:

46501.
 (a)   If the department board  determines that any amount of fee, penalty, or interest has been paid more than once or has been erroneously or illegally collected or computed, the department board  shall set forth that fact in its records and certify the amount collected in excess of what was legally due and the person from whom it was collected or by whom paid. The excess amount collected or paid shall be credited on any amounts then due from the person from whom the excess amount was collected or by whom it was paid under this part, and the balance shall be refunded to the person, or the person’s  his or her  successors, administrators, or executors.  
(b)   Any proposed  determination by the department board  that is in excess of fifty thousand dollars ($50,000) shall be available as a public record for at least 10 days after  prior to  the effective date of that determination.  

SEC. 64.

 Section 46551 of the Revenue and Taxation Code is amended to read:

46551.
 (a)   If any amount has been illegally determined, either by the person filing the return or by the department, board,  the department board  shall certify the amount determined to be in excess of the amount legally due and the person against whom the determination was made and authorize the cancellation of the amount upon the records of the department. board.  
(b)   Any proposed  determination by the department board  that is in excess of fifty thousand dollars ($50,000) shall be available as a public record for at least 10 days after  prior to  the effective date of that determination.  

SEC. 65.

 Section 50139 of the Revenue and Taxation Code is amended to read:

50139.
 (a)   If the department board  determines that any amount of fee, interest, or penalty has been paid more than once or has been erroneously or illegally collected or computed, the department board  shall set forth that fact in its records and certify the amount collected in excess of what was legally due and the person from whom it was collected or by whom it was paid. The excess amount collected or paid shall be credited on any amounts then due from the person from whom the excess amount was collected or by whom it was paid under this part, and the balance shall be refunded to the person, or the person’s successors, administrators, or executors.  
(b)   Any proposed  determination by the department board  that is in excess of fifty thousand dollars ($50,000) shall be available as a public record for at least 10 days after  prior to  the effective date of that determination.  

SEC. 66.

 Section 50151 of the Revenue and Taxation Code is amended to read:

50151.
 (a)   If any amount has been illegally determined, the department board  shall certify the amount determined to be in excess of the amount legally due and the person against whom the determination was made and authorize the cancellation of the amount upon the records of the department. board.  
(b)   Any proposed  determination by the department board  that is in excess of fifty thousand dollars ($50,000) shall be available as a public record for at least 10 days after  prior to  the effective date of that determination.  

SEC. 67.

 Section 50156.9 of the Revenue and Taxation Code is amended to read:

50156.9.
 (a)   Every fee payer  feepayer  is entitled to be reimbursed for any reasonable fees and expenses related to a hearing before the board if all of the following conditions are met:  
(1)   The fee payer  feepayer  files a claim for the fee and expenses with the board within one year of the date the decision of the board becomes final. board.  
(2)   The board, in its sole discretion, finds that the action taken by the board staff was unreasonable.  
(3)   The board decides that the fee payer  feepayer  be awarded a specific amount of fees and expenses related to the hearing, in an amount which shall be  determined by the board in its sole discretion. board.  
(b)   To determine whether the board staff has been unreasonable, the board shall consider whether the board staff  feepayer  has established that its position was  the position of the board staff was not  substantially justified.  
(c)   The amount of reimbursed fees and expenses shall be limited to the following:  
(1)   Fees and expenses incurred after the date of the notice of determination, jeopardy determination, or a claim for refunds. filing petitions for redetermination and claims for refund.  
(2)   If the board finds that the staff was unreasonable with respect to certain issues but reasonable with respect to other issues, the amount of reimbursed fees and expenses shall be limited to those that relate to the issues where the staff was unreasonable.  
(d)   Any proposed award by the board pursuant to subdivision (a) shall be available as a public record for at least 10 days prior to the effective date of the award.  
(e) The amendments to this section by the act adding this subdivision shall be operative for claims filed on or after January 1, 2000.

SEC. 68.

 Section 50156.12 of the Revenue and Taxation Code is amended to read:

50156.12.
 (a)   The California Department of Tax and Fee Administration  board  shall release any levy or notice to withhold issued pursuant to this part on any property in the event that the expense of the sale process exceeds the liability for which the levy is made.  
(b)   (1)  (A)  The Taxpayers’ Rights Advocate may order the release of any levy or notice to withhold issued pursuant to this part or, within 90 days from the receipt of funds pursuant to a levy or notice to withhold, order the return of any amount up to two one  thousand three five  hundred dollars ($2,300) ($1,500)  of moneys received, upon his or her finding that the levy or notice to withhold threatens the health or welfare of the feepayer or his or her spouse and dependents or family.  
(B) The amount the Taxpayers’ Rights Advocate may return to each taxpayer subject to a levy or notice to withhold, is limited to two thousand three hundred dollars ($2,300), or the adjusted amount as specified in paragraph (2), in any monthly period.
(C) The Taxpayers’ Rights Advocate may order amounts returned in the case of a seizure of property as a result of a jeopardy determination, subject to the amounts set or adjusted pursuant to this section and if the ultimate collection of the amount due is no longer in jeopardy.
(2) (A) The California Department of Tax and Fee Administration shall adjust the two-thousand-three-hundred-dollar ($2,300) amount specified in paragraph (1) as follows:
(i) On or before March 1, 2016, and on or before March 1 each year thereafter, the California Department of Tax and Fee Administration shall multiply the amount applicable for the current fiscal year by the inflation factor adjustment calculated based on the percentage change in the Consumer Price Index, as recorded by the California Department of Industrial Relations for the most recent year available, and the formula set forth in paragraph (2) of subdivision (h) of Section 17041. The resulting amount will be the applicable amount for the succeeding fiscal year only when the applicable amount computed is equal to or exceeds a new operative threshold, as defined in subparagraph (B).
(ii) When the applicable amount equals or exceeds an operative threshold specified in subparagraph (B), the resulting applicable amount, rounded to the nearest multiple of one hundred dollars ($100), shall be operative for purposes of paragraph (1) beginning July 1 of the succeeding fiscal year.
(B) For purposes of this paragraph, “operative threshold” means an amount that exceeds by at least one hundred dollars ($100) the greater of either the amount specified in paragraph (1) or the amount computed pursuant to subparagraph (A) as the operative adjustment to the amount specified in paragraph (1).
(c)   The California Department of Tax and Fee Administration  board  shall not sell any seized property until it has first notified the fee payer in writing of the exemptions from levy under Chapter 4 (commencing with Section 703.010) of Division 2 of Title 9 of Part 2 of the Code of Civil Procedure.  
(d) Except   as provided in subparagraph (C) of paragraph (1) of subdivision (b), this  This  section shall not apply to the seizure of any property as a result of a jeopardy determination. assessment.  

SEC. 69.

 Section 55221 of the Revenue and Taxation Code is amended to read:

55221.
 (a)   If the department board  determines that any amount of the fee, penalty, or interest has been paid more than once or has been erroneously or illegally collected or computed, the department board  shall set forth that fact in its records and certify the amount collected in excess of what was legally due and the person from whom it was collected or by whom paid. The excess amount collected or paid shall be credited on any amounts then due from the person from whom the excess amount was collected or by whom it was paid under this part, and the balance shall be refunded to the person, or the person’s  his or her  successors, administrators, or executors.  
(b)   Any proposed  determination by the department board  that is in excess of fifty thousand dollars ($50,000) shall be available as a public record for at least 10 days after  prior to  the effective date of that determination.  

SEC. 70.

 Section 55281 of the Revenue and Taxation Code is amended to read:

55281.
 (a)   If any amount has been illegally determined, either by the person filing the return or by the department, board,  the department board  shall certify the amount determined to be in excess of the amount legally due and the person against whom the determination was made and authorize the cancellation of the amount upon the records of the department. board.  
(b)   Any proposed  determination by the department board  that is in excess of fifty thousand dollars ($50,000) shall be available as a public record for at least 10 days after  prior to  the effective date of that determination.  

SEC. 71.

 Section 60025 of the Revenue and Taxation Code is repealed.

60025.
 “Gallon” means the United States gallon of 231 cubic inches or the volumetric gallon adjusted to 60 degrees Fahrenheit when the invoice and settlement are made on the temperature corrected gallonage.

SEC. 72.

 Section 60027 of the Revenue and Taxation Code is amended to read:

60027.
 “Qualified highway  “Highway  vehicle operator” means any person licensed as a qualified highway vehicle operator  includes any person  that owns, operates, or otherwise controls a diesel-powered highway vehicle and delivers, places,  or causes to be delivered, placed,  diesel fuel or any liquid into the fuel tank of a diesel-powered highway vehicle and is qualified to use dyed diesel fuel on the highway by the Internal Revenue Service under Section 48.4082-4 of Title 26 of the Code of Federal Regulations. vehicle. 

SEC. 73.

 Section 60058 of the Revenue and Taxation Code is amended to read:

60058.
 The tax specified in Section 60050 is imposed as a backup tax as follows: on the delivery into the fuel tank of a diesel-powered highway vehicle of any of the following: 
(a) On the delivery into the fuel tank of a diesel-powered highway vehicle of:
(1) (a)   Any diesel fuel that contains a dye.  
(2) (b)   Any diesel fuel on which a claim for refund has been allowed.  
(3) (c)   Any liquid on which tax has not been imposed by this part, Part 2 (commencing with Section 7301), or Part 3 (commencing with Section 8601).
(b) On the sale of any diesel fuel on which a claim for refund has been allowed.
(c) On the sale and delivery into the fuel tank of a diesel-powered highway vehicle of any diesel fuel that contains a dye or any liquid on which tax has not been imposed by this part, Part 2 (commencing with Section 7301), or Part 3 (commencing with Section 8601).
(d) For the purposes of this section, aircraft jet fuel on which tax has been imposed only pursuant to Part 2, Chapter 2.5 (commencing with Section 7385) shall be deemed to be a liquid on which tax has not been imposed by Part 2 (commencing with Section 7301).

SEC. 74.

 Section 60100 of the Revenue and Taxation Code, as amended by Chapter 34 of the Statutes of 1995, is amended to read:

60100.
 (a)   The provisions of this part requiring the payment of taxes do not apply to any of the following:  
(1)   The removal from a terminal or refinery of, or the entry or sale of, any diesel fuel if all of the following apply:  
(A)   The person otherwise liable for tax is a diesel fuel registrant.  
(B)   In the case of a removal from a terminal, the terminal is an approved terminal.  
(C)   The diesel fuel satisfies the dyeing and marking requirements of Section 60101.  
(2)   Any entry or removal from a terminal or refinery of taxable diesel fuel transferred in bulk to a refinery or terminal if the persons involved (including the terminal operator) are registered.  
(3)   The removal of diesel fuel if all of the following apply:  
(A)   The diesel fuel is removed by railroad car from an approved refinery and is received at an approved terminal.  
(B)   The refinery and the terminal are operated by the same diesel fuel registrant.  
(C)   The refinery is not served by pipeline (other than a pipeline for the receipt of crude oil) or vessel.  
(4)   Diesel fuel which, pursuant to the contract of sale, is required to be shipped and is shipped to a point outside of this state by a supplier by means of any of the following:  
(A)   Facilities operated by the supplier.  
(B)   Delivery by the supplier to a carrier, customs broker, or forwarding agent, whether hired by the purchaser or not, for shipment to the out-of-state point.  
(C)   Delivery by the supplier to any vessel clearing from a port of this state for a port outside of this state and actually exported from this state in the vessel.  
(5)   Backup tax does not apply to delivery of diesel fuel into the fuel tank of a diesel-powered highway vehicle as provided in Section 60058 for any of the following:  
(A)   Use on a farm for farming purposes.  
(B)   Use in an exempt bus operation.  
(C)   Use in a diesel-powered highway vehicle that is operated off the highway.  
(D)   Use in a diesel-powered highway vehicle that is owned and operated by a government entity.  
(E)   Use by the United States and its agencies and instrumentalities.  
(6)   Diesel fuel sold by credit card certified by the United States Department of State to any consulate officer or consulate employee of a foreign government who is not engaged in any private occupation for gain within this state, who uses the diesel fuel in a motor vehicle which is registered with the United States Department of State, and whose government has done either of the following:  
(A)   Entered into a treaty with the United States providing for the exemption of its representatives from national, state, and municipal taxes.  
(B)   Granted a similar exemption to representatives of the United States.  
(7)   Diesel fuel sold by a supplier to a train operator for use in a diesel-powered train or for other off-highway use and the supplier has on hand an exemption certificate from the train operator.  
(8)   Diesel fuel sold by a supplier to the United States and its agencies and instrumentalities.  
(b)   For purposes of this section:  
(1)   “Carrier” means a person or firm engaged in the business of transporting for compensation property owned by other persons, and includes both common and contract carriers.  
(2)   “Forwarding agent” means a person or firm engaged in the business of preparing property for shipment or arranging for its shipment.  

SEC. 75.

 Section 60104 of the Revenue and Taxation Code is amended to read:

60104.
 Any person that fails to provide or post the required notice with respect to any dyed diesel fuel is presumed to know, for purposes of the penalty imposed by Section 60709, that the diesel fuel will be used for a taxable use.

SEC. 76.

 The heading of Chapter 4 (commencing with Section 60110) of Part 31 of Division 2 of the Revenue and Taxation Code is amended to read:

CHAPTER  4. Interstate Users

SEC. 77.

 Section 60111 of the Revenue and Taxation Code is amended to read:

60111.
 “Interstate user” includes any person who uses diesel fuel in the operation of a qualified motor vehicle in this state and who operates the qualified motor vehicle within and without this state or the United States.

SEC. 78.

 Section 60112 of the Revenue and Taxation Code is amended to read:

60112.
 “Qualified motor vehicle” means a motor vehicle used, designed, or maintained for transportation of persons or property that (a) has two axles and a gross vehicle weight or registered gross vehicle weight exceeding 26,000 pounds or 11,797 kilograms, (b) has three or more axles regardless of weight, or (c) is used in combination, when the weight of that combination exceeds 26,000 pounds or 11,797 kilograms gross vehicle weight. “Qualified motor vehicle” does not include recreational vehicles.

SEC. 79.

 Section 60114 of the Revenue and Taxation Code is amended to read:

60114.
 “Diesel vendor” means every person who sells diesel fuel in this state and places, or causes to be placed, the diesel fuel into a fuel tank of a qualified motor vehicle and at the time of sale, collects the diesel fuel tax from an interstate user.

SEC. 80.

 Section 60115 of the Revenue and Taxation Code is amended to read:

60115.
 (a)   For the privilege of using diesel fuel in a qualified motor vehicle in this state by interstate users, there is hereby imposed upon any interstate user for each gallon of diesel fuel used in this state,  used,  a tax consisting of the following two components: of eighteen cents ($0.18).  
(b)  If the federal fuel tax is reduced below the rate of fifteen cents ($0.15) per gallon and federal financial allocations to this state for highway and exclusive public mass transit guideway purposes are reduced or eliminated correspondingly, the tax rate imposed by this section, on and after the date of the reduction, shall be increased by an amount so that the combined state and federal tax rate per gallon equals thirty-three cents ($0.33).
(a) (c)   A  If any person or entity is exempt or partially exempt from the federal fuel  tax at the rate imposed by Section 60050. time of a reduction, the person or entity shall continue to be exempt under this section.  
(b) A tax at the rate prescribed by Section 60116.

SEC. 81.

 The heading of Article 3 (commencing with Section 60120) of Chapter 4 of Part 31 of Division 2 of the Revenue and Taxation Code is amended to read:

Article  3. Licenses for Interstate Users

SEC. 82.

 Section 60121 of the Revenue and Taxation Code is amended to read:

60121.
 Before granting a license to  authorizing a person to engage in business as  an interstate user, the board may require the person to file with the board security pursuant to Section 60401. The license issued to any interstate user is not transferable and is valid until canceled or revoked.

SEC. 83.

 Section 60122 of the Revenue and Taxation Code is amended to read:

60122.
 The board or its authorized representative may issue a California fuel trip permit to interstate users for entry into this state. The California may authorize the issuance of diesel fuel trip permits to holders of trip permits issued under Section 4004 of the Vehicle Code. The diesel  fuel trip permit shall be valid for four consecutive days and includes any reentry into the state during the four-day period.  the same period as the trip permit issued under Section 4004 of the Vehicle Code.  The fee for issuance of a California diesel  fuel trip permit is thirty dollars ($30). Other provisions of this article and Article 1 (commencing with Section 60201) of Chapter 6 shall not apply to the holder of a California diesel  fuel trip permit who uses only diesel fuel brought into this state in the fuel tank of the qualified motor vehicle and diesel fuel purchased in this state with the diesel fuel tax paid and delivered into the fuel tank of the qualified motor vehicle. Any diesel fuel tax paid to a diesel vendor for diesel fuel taken out of the state in the fuel tank of a qualified motor vehicle operated under a California diesel  fuel trip permit shall not be refunded to the holder of the California diesel  fuel trip permit, notwithstanding any other provision of this part.
The board may deny the issuance of more than one diesel fuel trip permit for any interstate user determined by the board to bring vehicles into this state on a regular, ongoing basis. The board shall maintain a file of all permits issued under this section for the purpose of determining the effectiveness of the program and the appropriateness of the fee. The board may  enter into an interagency agreement with the Department of Motor Vehicles providing for the issuance of California diesel  fuel trip permits by that department.

SEC. 84.

 Chapter 4.5 (commencing with Section 60130) is added to Part 31 of Division 2 of the Revenue and Taxation Code, to read:

CHAPTER  4.5. International Fuel Tax Agreement
60130.
 Effective on and after January 1, 1996, the provisions of Chapter 2 (commencing with Section 9405) of Part 3.5 shall apply to all interstate users.

SEC. 85.

 Section 60181 of the Revenue and Taxation Code, as amended by Chapter 34 of the Statutes of 1995, is amended to read:

60181.
 The board may revoke any of the following licenses:
(a)   Any supplier’s license held by a person who does not engage in, or who discontinues, the removal, entry, or sale of diesel fuel, producing of blended diesel fuel, owning or holding inventory position of diesel fuel, or owning or operating a refinery or terminal as any of the following:  
(1)   A blender, as defined in Section 60012.  
(2)   An enterer, as defined in Section 60013.  
(3)   A positionholder, as defined in Section 60010.  
(4)   A refiner, as defined in Section 60011.  
(5)   A terminal operator, as defined in Section 60009.  
(6)   A throughputter, as defined in Section 60035.  
(b)   Any interstate user’s license held by a person who does not engage in, or who discontinues, using diesel fuel as an “interstate user” as defined in Section 60111.  
(c)   Any ultimate vendor’s license held by a person who does not engage in, or who discontinues, selling undyed diesel fuel as an “ultimate vendor” as defined in Section 60036.  
(d)   Any exempt bus operator’s license held by a person who does not engage in, or who discontinues, using diesel fuel as an “exempt bus operator” as defined in Section 60040.  
(e)   Any qualified  highway vehicle operator’s or end seller’s  license held by a person who does not engage in, or who discontinues, the delivery of diesel fuel subject to the backup tax into fuel tanks of diesel-powered highway vehicles as a qualified  highway vehicle operator as defined in Section 60027. 60027 or as an end seller as defined in Section 60034.  
(f)   Any government entity’s license held by a government entity that does not engage in, or that discontinues using diesel fuel in, the operation of a diesel-powered highway vehicle upon the state’s highways.  

SEC. 86.

 Section 60202 of the Revenue and Taxation Code is amended to read:

60202.
 (a)   Each interstate user shall prepare and file with the board a return in the form as  on forms  prescribed by the board, which may include, but not be limited to, electronic media  board a return  showing the amount of diesel fuel used during the quarterly reporting period by the interstate user in this state, the amount of any tax due, and any other information as the board may require for the administration of this part. The return shall be filed with the board on or before the last day of the calendar month following the close of the quarterly period to which it relates, together with a remittance payable to the board of the amount of tax due. To facilitate the administration of this part, the board may require the filing of returns for other than quarterly periods. Returns shall be authenticated in a form or pursuant to methods as may be prescribed by the board. 
(b)   An interstate user subject to the tax imposed by Section 60115 shall be allowed a credit against the amount of tax due on his or her return for an amount equal to the tax imposed by Section 60115 on diesel fuel purchased in this state in that same return period for use in the operation of a qualified motor vehicle. No credit shall be allowed unless the tax imposed by Section 60050 and the taxes imposed by Part 1 (commencing with Section 6001) and Part 1.5 (commencing with Section 7200) of Division 2 of the Revenue and Taxation Code and Section 35 of Article XIII of the California Constitution have been paid upon the purchase of the diesel fuel by the interstate user  who has paid diesel fuel tax  to a diesel vendor in this state. When the amount of the credit for any return period exceeds the amount of tax due for the return period, the excess  state  shall be allowed as  a credit against the amount of tax due for succeeding reporting periods or shall be refunded. on his or her return for the tax paid to the diesel vendor.  
(c) Credits   and refunds allowed pursuant to subdivision (b) shall be charged against the Motor Vehicle Fuel Account to the extent the total amount of credits and refunds allowed to all taxpayers for the fiscal year does not exceed the combined amounts due under subdivisions (a) and (b) of Section 60115. To the extent the total amount of credits and refunds allowed to all taxpayers for the fiscal year pursuant to subdivision (b) exceeds the combined amounts due under subdivisions (a) and (b) of Section 60115, the credits and refunds shall be charged against the Motor Vehicle Fuel Account as to the amount of the credits and refunds established under subdivision (a) of Section 60115 and shall be charged against the Retail Sales Tax Fund as to the amount of the credits and refunds established under subdivision (b) of Section 60115. If any interstate user has paid a backup tax to the state, he or she shall be allowed a credit against the amount of tax due under Section 60115 with respect to that diesel fuel on which the backup tax was paid to the state.  

SEC. 87.

 Section 60360 of the Revenue and Taxation Code, as amended by Chapter 34 of the Statutes of 1995, is amended to read:

60360.
 If any person becomes a supplier, exempt bus operator, government entity, qualified  highway vehicle operator, end seller,  or interstate user without first securing a license, the tax, and applicable penalties and interest, if any, become immediately due and payable on account of all diesel fuel removed, entered, sold, delivered, or used by him or her.

SEC. 88.

 Section 60441 of the Revenue and Taxation Code is amended to read:

60441.
 Notwithstanding Section 60445, the tax, interest, and penalties are a lien upon and have the effect of an execution duly levied against any qualified motor vehicle in which diesel fuel taxable under this part is used and against any personal property of the interstate user.

SEC. 89.

 Section 60501 of the Revenue and Taxation Code, as amended by Chapter 34 of the Statutes of 1995, is amended to read:

60501.
 Persons who have paid a tax for diesel fuel lost, sold, or removed as provided in paragraph (4) of subdivision (a), or  used in a nontaxable use, other than on a farm for farming purposes or in an exempt bus operation, shall, except as otherwise provided in this part, be reimbursed and repaid the amount of the tax.
(a) Except   as otherwise provided in subdivision (b), a  A  claim for refund with respect to diesel fuel is allowed under this section only if all of the following apply:  
(1)   Tax was imposed on the diesel fuel to which the claim relates.  
(2)   The claimant bought or produced the diesel fuel and did not sell or resell it in this state except as provided in paragraph (4). state.  
(3)   The claimant has filed a timely claim for refund that contains the information required under subdivision (b) and the claim is supported by the original invoice or original invoice facsimile retained in an alternative storage media  showing the purchase. If no original invoice was created, electronic invoicing shall be accepted as reflected by a computerized facsimile when accompanied by an original copy of the bill of lading or fuel manifest that can be directly tied to the electronic invoice. 
(4)   The diesel fuel was any of the following:  
(A)   Used for purposes other than operating motor vehicles upon the public highways of the state.  
(B)   Exported for use outside of this state. Diesel fuel carried from this state in the fuel tank of a motor vehicle is not deemed to be exported from this state unless the diesel fuel becomes subject to tax as an import under the laws of the destination state.  
(C)   Used in any construction equipment that is exempt from vehicle registration pursuant to the Vehicle Code, while operated within the confines and limits of a construction project.  
(D)   Used in the operation of a motor vehicle on any highway that is under the jurisdiction of the United States Department of Agriculture and with respect to the use of the highway the claimant pays, or contributes to, the cost of construction or maintenance thereof pursuant to an agreement with, or permission of, the United States Department of Agriculture.  
(E)   Used in any motor vehicle owned by any county, city and county, city, district, or other political subdivision or public agency when operated by it over any highway constructed and maintained by the United States or any department or agency thereof within a military reservation in this state. If the motor vehicle is operated both over the highway and over a public highway outside the military reservation in a continuous trip the tax shall not be refunded as to that portion of the diesel fuel used to operate the vehicle over the public highway outside the military reservation.  
Nothing contained in this section shall be construed as a refund of the tax for the use of diesel fuel in any motor vehicle operated upon a public highway within a military reservation, which highway is constructed or maintained by this state or any political subdivision thereof.
As used in this section, “military reservation” includes any establishment of the United States Government government  or any agency thereof used by the Armed Forces armed forces  of the United States for military, air, or naval operations, including research projects.
(F)   Sold by a supplier and which was sold  to any consulate officer or consulate employee under circumstances which would have entitled the supplier to an exemption under paragraph (6) of subdivision (a) of Section 60100 if the supplier had sold the diesel fuel directly to the consulate officer or consulate employee.  
(G) Lost in the ordinary course of handling, transportation, or storage.
(H) (i) Sold by a person to the United States and its agencies and instrumentalities under circumstances that would have entitled that person to an exemption from the payment of diesel fuel tax under Section 60100 had that person been the supplier of this diesel fuel.
(ii) Sold by a supplier and which was sold by credit card to the United States and its agencies and instrumentalities under circumstances which would have entitled the supplier to an exemption under Section 60100 if the supplier had sold the diesel fuel directly to the United States and its agencies and instrumentalities.
(I) (G)  Sold   by a person to a train operator for use in a diesel-powered train or for other off-highway use  Any person who sells diesel fuel to the United States and its agencies and instrumentalities  under circumstances that would have entitled that person  him or her  to an exemption from the payment of diesel fuel tax under Section 60100 had that person  he or she  been the supplier of this diesel fuel.  
(J) Removed from an approved terminal at the terminal rack, but only to the extent that the supplier can show that the tax on the same amount of diesel fuel has been paid more than one time by the same supplier.
(b) Where tax is not imposed on dyed blended biodiesel fuel upon removal from an approved terminal at the terminal rack, if tax was previously imposed on the biodiesel fuel portion of the dyed blended biodiesel fuel, then, pursuant to paragraph (1) of subdivision (a), a claim for refund is allowed for the tax that was paid on that biodiesel fuel, but only to the extent a supplier can show that the tax on that biodiesel fuel has been paid by the same supplier.
(c) (b)   Each claim for refund under this section shall contain the following information with respect to all of  the diesel fuel covered by the claim:  
(1)   The name, address, telephone number, and permit number of the person that sold the diesel fuel to the claimant and the date of the purchase.  
(2)   A statement by the claimant that the diesel fuel covered by the claim did not contain visible evidence of dye.  
(3)   A statement, which may appear on the invoice, original  invoice facsimile,  or similar document, by the person that sold the diesel fuel to the claimant that the diesel fuel sold did not contain visible evidence of dye.  
(4)   The total amount of diesel fuel covered by the claim.  
(5)   The use made of the diesel fuel covered by the claim described by reference to specific categories listed in paragraph (4) of subdivision (a).  
(6)   If the diesel fuel covered by the claim was exported, a statement that the claimant has the proof of exportation.  
(d) (c)   Each claim for refund under this section shall be made on a form prescribed by the board and shall be filed for a calendar year. If, at the close of any of the first three quarters of the calendar year, more than seven hundred fifty dollars ($750) is refundable under this section with respect to diesel fuel used or exported during that quarter or any prior quarter during the calendar year, and for which no other claim has been filed, a claim may be filed for the quarterly period. To facilitate the administration of this section, the board may require the filing of claims for refund for other than yearly periods.  

SEC. 90.

 Section 60502 of the Revenue and Taxation Code is amended to read:

60502.
 (a)   Any ultimate vendor who has paid a tax on diesel fuel sold to an ultimate purchaser for use on a farm for farming purposes or use in an exempt bus operation shall, except as otherwise provided in this part, be reimbursed and repaid the amount of the tax.  
(b)   A claim for refund with respect to diesel fuel is allowed under this section only if all of the following apply:  
(1)   Tax was imposed on the diesel fuel to which the claim relates.  
(2)   The claimant sold the diesel fuel to the ultimate purchaser for use on a farm for farming purposes or for use in an exempt bus operation.  
(3)   The claimant is a registered ultimate vendor.  
(4)   The claimant has filed a timely claim for refund that contains the information required under subdivision (c) and the claim is supported by the original invoice showing the purchase. If no original invoice was created, electronic invoicing shall be accepted as reflected by a computerized facsimile when accompanied by an original copy of the bill of lading or fuel manifest that can be directly tied to the electronic invoice. 
(c)   Each claim for refund under this section shall contain the following information with respect to all the diesel fuel covered by the claim:  
(1)   The claimant’s permit number.  
(2)   The name, address, telephone number, and permit number of each person that sold the diesel fuel to the claimant and the date of the purchase.  
(3)   The name, address, telephone number, and federal taxpayer identification number of each farmer or the permit number of each exempt bus operator that bought the diesel fuel from the claimant and the number of gallons that the claimant sold to each.  
(4)   A statement that the diesel fuel covered by the claim did not contain visible evidence of dye.  
(5)   The total amount of diesel fuel covered by the claim.  
(6)   A statement that the claimant has not included the amount of the tax in its sales price of the diesel fuel and has not collected the amount of tax from its buyer.  
(7)   A statement that the claimant has in its possession an unexpired exemption certificate described in Section 60503 and the claimant has no reason to believe any information in the certificate is false.  
(8) A statement that the amounts claimed have not been previously refunded to the claimant and that there are no other claims outstanding for the amounts included in the current claim.
(d)   Each claim for refund under this section shall be made on a form prescribed by the board and shall be for an amount of not less than two hundred dollars ($200) and for a period of not less than one week.  

SEC. 91.

 The heading of Article 2 (commencing with Section 60521) of Chapter 8 of Part 31 of Division 2 of the Revenue and Taxation Code is amended to read:

Article  2. Claim for Refunds of Licensed Suppliers, Interstate Users, Exempt Bus Operators, Highway Vehicle Operators, and End Sellers

SEC. 92.

 Section 60521 of the Revenue and Taxation Code, as amended by Chapter 34 of the Statutes of 1995, is amended to read:

60521.
 If the department board  determines that any amount not required to be paid under this part has been paid by any person to the state, the department  that is a licensed supplier, interstate user, exempt bus operator, government entity, highway vehicle operator, or end seller, the board  shall set forth that fact in its records and certify the amount paid in excess of the amount legally due and the person by whom the excess was paid to the department board  or from whom it was collected. The excess amount paid or collected shall be credited on any amounts then due and payable from the person from whom the excess amount was collected or by whom it was paid under this part, and the balance shall either be refunded to the person, or the person’s  his or her  successors, administrators, executors, or assigns, or, if authorized by the department, board,  deducted by the person from any amounts to become due from the person  him or her  under this part.
For any amount exceeding fifty thousand dollars ($50,000), the department’s  board’s proposed  determination under this section shall be available as a public record for at least 10 days after  prior to  the effective date of the determination.

SEC. 93.

 Section 60524 of the Revenue and Taxation Code is amended to read:

60524.
 Interest shall be paid upon any overpayment of any amount of tax at the modified adjusted rate per month established pursuant to Section 6591.5 from the first day of the calendar month following the reporting  period during which the overpayment is made. In addition, a refund or credit shall be made of any interest imposed upon the claimant with respect to the amount being refunded or credited.
The interest shall be paid as follows:
(a)   In the case of a refund, to the last day of the calendar month following the date upon which the person making the overpayment, if he or she has not already filed a claim, is notified by the board that a claim may be filed or the date upon which the claim is approved by the board, whichever date is the earlier.  
(b)   In the case of a credit, to the same date as that to which interest is computed on the tax or amount against which the credit is applied.  

SEC. 93.5.

 Section 60524 of the Revenue and Taxation Code is amended to read:

60524.
 Interest shall be paid upon any overpayment of any amount of tax at the modified adjusted rate per month annum  established pursuant to Section 6591.5 from the first day of the calendar month following the reporting  period during which the overpayment is made. In addition, a refund or credit shall be made of any interest imposed upon the claimant with respect to the amount being refunded or credited.
The interest shall be paid as follows:
(a)   In the case of a refund, to the last day of the calendar month following the date upon which the person making the overpayment, if he or she has not already filed a claim, is notified by the board that a claim may be filed or the date upon which the claim is approved by the board, whichever date is the earlier.  
(b)   In the case of a credit, to the same date as that to which interest is computed on the tax or amount against which the credit is applied.  

SEC. 94.

 Section 60604 of the Revenue and Taxation Code, as amended by Chapter 34 of the Statutes of 1995, is amended to read:

60604.
 Every interstate user, supplier, exempt bus operator, government entity, ultimate vendor, qualified  highway vehicle operator, highway vehicle operator/fueler,  train operator, pipeline operator, vessel operator,  and every person dealing in, removing, transporting, or storing diesel fuel in this state shall keep those records, receipts, invoices, and other pertinent papers with respect thereto in that form as the board may require. Failure to maintain records will constitute a misdemeanor punishable as provided in Section 60706.

SEC. 95.

 Section 60606 of the Revenue and Taxation Code, as amended by Chapter 34 of the Statutes of 1995, is amended to read:

60606.
 The board or its authorized representative may examine the books, records, and equipment of any interstate user, supplier, exempt bus operator, government entity, ultimate vendor, qualified  highway vehicle operator, highway vehicle operator/fueler,  train operator, pipeline operator, vessel operator,  or person dealing in, removing, transporting, or storing diesel fuel and may investigate the character of the disposition that the interstate user, supplier, exempt bus operator, government entity, ultimate vendor, qualified  highway vehicle operator, highway vehicle operator/fueler,  train operator, pipeline operator, vessel operator,  or person makes of the diesel fuel in order to ascertain whether all taxes due under this part are being properly reported and paid.

SEC. 96.

 Section 60703 of the Revenue and Taxation Code is amended to read:

60703.
 Any person who acquires diesel fuel outside this state and uses the diesel fuel for the operation of a qualified motor vehicle within and without this state or the United States, is guilty of a misdemeanor punishable as provided in Section 60706 unless that person is an interstate user who holds a valid diesel fuel tax license or diesel fuel trip permit as defined in Sections 60120 and 60122.
SEC. 97.
 Section 6076 as added to the Revenue and Taxation Code by Section 6 of this act shall become operative only if Senate Bill 531 of the 1995–96 Regular Session is not enacted or if Senate Bill 531 is enacted but does not add Section 6075 to the Revenue and Taxation Code. If Senate Bill 531 of the 1995–96 Regular Session is enacted and adds Section 6075 to the Revenue and Taxation Code, Section 6076 as added to the Revenue and Taxation Code by Section 6 of this act shall not become operative.
SEC. 98.
 Section 26.5 of this bill incorporates amendments to Section 8777 of the Revenue and Taxation Code proposed by both this bill and AB 1940. It shall only become operative if (1) both bills are enacted and become effective on January 1, 1996, (2) each bill amends Section 8777 of the Revenue and Taxation Code, and (3) this bill is enacted after AB 1940, in which case Section 26 of this bill shall not become operative.
SEC. 99.
 Section 28.5 of this bill incorporates amendments to Section 8803 of the Revenue and Taxation Code proposed by both this bill and AB 1940. It shall only become operative if (1) both bills are enacted and become effective on January 1, 1996, (2) each bill amends Section 8803 of the Revenue and Taxation Code, and (3) this bill is enacted after AB 1940, in which case Section 28 of this bill shall not become operative.
SEC. 100.
 Section 29.5 of this bill incorporates amendments to Section 8876 of the Revenue and Taxation Code proposed by both this bill and AB 1940. It shall only become operative if (1) both bills are enacted and become effective on January 1, 1996, (2) each bill amends Section 8876 of the Revenue and Taxation Code, and (3) this bill is enacted after AB 1940, in which case Section 29 of this bill shall not become operative.
SEC. 101.
 Section 31.5 of this bill incorporates amendments to Section 9155 of the Revenue and Taxation Code proposed by both this bill and AB 1940. It shall only become operative if (1) both bills are enacted and become effective on January 1, 1996, (2) each bill amends Section 9155 of the Revenue and Taxation Code, and (3) this bill is enacted after AB 1940, in which case Section 31 of this bill shall not become operative.
SEC. 102.
 Section 93.5 of this bill incorporates amendments to Section 60524 of the Revenue and Taxation Code proposed by both this bill and AB 1940. It shall only become operative if (1) both bills are enacted and become effective on January 1, 1996, (2) each bill amends Section 60524 of the Revenue and Taxation Code, and (3) this bill is enacted after AB 1940, in which case Section 93 of this bill shall not become operative.