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AB-2238 Franchise Tax Board: membership.(2023-2024)



Current Version: 08/22/24 - Enrolled

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AB2238:v96#DOCUMENT

Enrolled  August 22, 2024
Passed  IN  Senate  August 20, 2024
Passed  IN  Assembly  May 22, 2024
Amended  IN  Assembly  May 20, 2024
Amended  IN  Assembly  March 21, 2024

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Assembly Bill
No. 2238

Introduced by Assembly Member Low

February 08, 2024

An act to amend, repeal, and add Section 15700 of the Government Code, relating to tax administration.


LEGISLATIVE COUNSEL'S DIGEST


AB 2238, Low. Franchise Tax Board: membership.
Existing law establishes, in the Government Operations Agency, the Franchise Tax Board consisting of the Controller, the Director of Finance, and the Chairperson of the State Board of Equalization. Existing law prescribes various powers and duties to the Franchise Tax Board, including, among other things, the administration of state personal income taxes and corporation franchise and income taxes.
This bill, beginning July 1, 2025, would add the Lieutenant Governor and the Treasurer as members of the Franchise Tax Board. The bill would also require the Controller to serve as the chair of the board.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 Section 15700 of the Government Code is amended to read:

15700.
 (a) There is in the state government, in the Government Operations Agency, a Franchise Tax Board consisting of the Controller, the Director of Finance, and the Chairperson of the State Board of Equalization. The Franchise Tax Board is the successor to, and is vested with, all of the duties, powers, purposes, responsibilities, and jurisdiction of the Franchise Tax Commissioner, but the statutes and laws under which that office existed and all laws prescribing the duties, powers, purposes, responsibilities, and jurisdiction of that office, together with all lawful rules and regulations established thereunder, are expressly continued in force. “Franchise Tax Commissioner” when used in a statute, law, rule, or regulation now in force, or that may hereafter be enacted or adopted, means the Franchise Tax Board. An action that the Franchise Tax Commissioner is a party to shall not abate by reason hereof but shall continue in the name of the Franchise Tax Board, and the Franchise Tax Board shall be substituted for the Franchise Tax Commissioner by the court wherein the action is pending. The substitution shall not in any way affect the rights of the parties to the action.
(b) Notwithstanding any other law, a directive or regulation adopted by the Franchise Tax Board shall take precedence over a directive or regulation adopted by its executive officer.
(c) This section shall remain in effect only until July 1, 2025, and as of that date is repealed.

SEC. 2.

 Section 15700 is added to the Government Code, to read:

15700.
 (a) There is in the state government, in the Government Operations Agency, a Franchise Tax Board consisting of the Controller, the Director of Finance, the Chairperson of the State Board of Equalization, the Lieutenant Governor, and the Treasurer. The Franchise Tax Board is the successor to, and is vested with, all of the duties, powers, purposes, responsibilities, and jurisdiction of the Franchise Tax Commissioner, but the statutes and laws under which that office existed and all laws prescribing the duties, powers, purposes, responsibilities, and jurisdiction of that office, together with all lawful rules and regulations established thereunder, are expressly continued in force. “Franchise Tax Commissioner” when used in a statute, law, rule, or regulation now in force, or that may hereafter be enacted or adopted, means the Franchise Tax Board. An action that the Franchise Tax Commissioner is a party shall not abate by reason hereof but shall continue in the name of the Franchise Tax Board, and the Franchise Tax Board shall be substituted for the Franchise Tax Commissioner by the court wherein the action is pending. The substitution shall not in any way affect the rights of the parties to the action.
(b) The Controller shall serve as the chair of the Franchise Tax Board.
(c) Notwithstanding any other law, a directive or regulation adopted by the Franchise Tax Board shall take precedence over a directive or regulation adopted by its executive officer.
(d) This section shall become operative on July 1, 2025.