California 2009-2010, 8th Special Session Status: Passed Assembly

AB 8 — Franchise Tax Board: State Board of Equalization: administration.

Last action — From committee without further action.

  1. ✓
    Introduced
  2. ✓
    In Committee
  3. 3
    Passed Assembly
  4. 4
    Passed Senate
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 2009-2010, 8th Special Session. It reached “Passed Assembly” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Summary

(1) The Personal Income Tax Law and the Corporation Tax Law impose taxes on, or measured by, income. Existing law allows a tax return or return information filed under those laws to be disclosed in a judicial or administrative proceeding pertaining to tax administration under certain circumstances. Existing law requires every board, as defined under the Business and Professions Code, and the Department of Insurance to, upon request of the Franchise Tax Board, furnish to the Franchise Tax Board certain information with respect to every licensee. This bill would require a state governmental licensing entity, as defined, issuing professional or occupational licenses, certificates, registrations, or permits to provide to the Franchise Tax Board the name and social security number or federal taxpayer identification number of each individual licensee of that entity. The bill would require the Franchise Tax Board, if an individual licensee fails to pay taxes for which a notice of state tax lien has been recorded, as specified, to send a notice of suspension to the licensee. The bill would provide that the license of a licensee who fails to satisfy the unpaid taxes by a certain date shall be automatically suspended, except as specified, and would require the Franchise Tax Board to mail a notice of suspension to the applicable state governmental licensing entity and to the licensee, and would provide that the suspension be canceled upon compliance with the tax obligation. The bill would require the Franchise Tax Board to meet certain requirements and would make related changes. (2) The Sales and Use Tax Law imposes a tax on retailers measured by the gross receipts from the sale of tangible personal property sold at retail in this state, or on the storage, use, or other consumption in this state of tangible personal property purchased from a retailer for storage, use or other consumption in this state, measured by sales price. That law defines a "retailer engaged in business in this state" to include retailers that engage in specified activities in this state and requires every retailer engaged in business in this state and making sales of tangible personal property for storage, use, or other consumption in this state to register with the State Board of Equalization and to collect the tax from the purchaser and remit it to the board. This bill would include in the definition of a "retailer engaged in business in this state" any retailer entering into agreements under which a person in this state, for a commission or other consideration, directly or indirectly refers potential purchasers, whether by a link or an Internet Web site or otherwise, to the retailer, provided the total cumulative sales price from all sales by the retailer to purchasers in this state that are referred pursuant to these agreements is in excess of $10,000 within the preceding 12 months, except as specified. (3) The Franchise Tax Board administers the Personal Income Tax Law and the Corporation Tax Law. Existing law authorizes persons that are required to withhold taxes from recipients of income to require the recipients of the income to provide that person with the recipient's name and address. This bill would require the recipient of income to also provide the person paying the income with the recipient's social security number or other taxpayer identification number if requested by the person paying the income. (4) Existing laws require the Franchise Tax Board to administer specified taxes and collect those taxes from delinquent tax debtors. This bill would require the board, in coordination with financial institutions doing business in this state, to operate a Financial Institution Record Match System utilizing automated data exchanges to the maximum extent feasible in order to allow the board to match its list of delinquent tax debtors with the lists provided by the financial institutions. The bill would authorize the board to disclose specified taxpayer information for purposes of data matching, to institute civil proceedings to enforce specified provisions of the bill, and would impose specified penalties on financial institutions for failure to provide records in connection with the match system, as provided. This bill would provide that the specified use of certain data is a misdemeanor. (5) Existing law imposes various taxes and fees, and certain penalties in connection with tax avoidance and abusive tax shelters, including reportable transactions. This bill would expand the definition of reportable transactions to include abusive tax avoidance transactions, as defined, and transactions of interest, as defined. This bill would also make technical, nonsubstantive changes to conform to this reference. (6) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. (7) The California Constitution authorizes the Governor to declare a fiscal emergency and to call the Legislature into special session for that purpose. The Governor issued a proclamation declaring a fiscal emergency, and calling a special session for this purpose, on January 8, 2010. This bill would state that it addresses the fiscal emergency declared by the Governor by proclamation issued on January 8, 2010, pursuant to the California Constitution.

Bill Text

Action History

  1. From committee without further action.

  2. Re-referred to Com. on RLS. by unanimous consent.

  3. In Assembly. Concurrence in Senate amendments pending.

  4. Read third time, passed, and to Assembly. (Ayes 23. Noes 15. Page 75.)

  5. Joint Rule 10.5 suspended. (Ayes 28. Noes 0. Page 70.)

  6. Read third time, amended, and returned to third reading.

  7. Read second time. To third reading.

  8. To second reading.

  9. Withdrawn from committee.

  10. In Senate. Read first time. To Com. on RLS. for assignment.

  11. Read third time, passed, and to Senate. (Ayes 46. Noes 0. Page 52.)

  12. Read second time. To third reading.

  13. Ordered to second reading.

  14. Without reference to committee.

  15. From printer.

  16. Read first time. To print.

Sponsors

  • Committee on Budget · Primary

Sponsorship breakdown

Export CSV (upgrade) →

1 sponsors · 0 co-sponsors · 121 not signed on · 1 voted No

Sponsors (1)

  • Committee on Budget

Co-sponsors (0)

None.

Not signed on (121)

121 members have not signed on to this bill.

Show all 121 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

Assembly 3rd Reading AB8 Committee on BUDGET (Evans) By Ducheny

Passed 24 Yea · 15 Nay · 1 Other
Party YeaNayPresentNot Voting
Unaffiliated 211401
Democratic 3000
Republican 0100
Total 241501
% of votes cast 60%38%0%3%
How each member voted (40)
Member Party Vote
Wyland — Nay
Corbett — Yea
Correa — Nay
Cox — Nay
DeSaulnier — Yea
Denham — Nay
Florez — Yea
Yee — Yea
Cedillo — Yea
Cogdill — Nay
Negrete — Yea
Ducheny — Yea
Hancock — Yea
Runner — Nay
Dutton — Nay
Hollingsworth — Nay
Huff — Nay
Kehoe — Yea
Leno — Yea
McLeod — Yea
Oropeza — Yea
Alquist — Yea
Ashburn — Nay
Pavley — Yea
Romero — Yea
Simitian — Yea
Walters — Nay
Wiggins — Yea
Wolk — Yea
Wright — Nay
Aanestad — Nay
Harman — Not Voting
Liu — Yea
Maldonado — Nay
Price — Yea
Steinberg — Yea
Calderon, Lisa Democratic Yea
Lowenthal, Josh Democratic Yea
Padilla, Stephen C. Democratic Yea
Strickland, Tony Republican Nay

Official roll call →

AB8 BUDGET Assembly Third Reading By EVANS Eighth Extraordinary Session

Passed 54 Yea · 0 Nay · 37 Other
Party YeaNayPresentNot Voting
Unaffiliated 480035
Democratic 5000
Republican 1002
Total 540037
% of votes cast 59%0%0%41%
How each member voted (91)
Member Party Vote
Emmerson — Not Voting
Eng — Yea
DeVore — Not Voting
Yamada — Yea
Fuentes — Yea
Garrick — Not Voting
Hagman — Not Voting
Carter — Not Voting
Chesbro — Yea
Tom — Yea
Berryhill — Yea
Evans — Yea
Feuer — Yea
Charles — Yea
Furutani — Yea
Galgiani — Yea
De — Yea
La — Yea
Torre — Yea
De — Yea
Leon — Yea
Bonnie — Yea
V. — Yea
Manuel — Yea
Perez — Yea
Portantino — Yea
Salas — Yea
Saldana — Yea
Conway — Not Voting
Cook — Not Voting
Coto — Yea
Bill — Not Voting
Berryhill — Not Voting
Hall — Yea
Hernandez — Yea
Hill — Yea
Huffman — Yea
Lieu — Yea
Anderson — Not Voting
Bass — Yea
Blakeslee — Not Voting
Davis — Not Voting
Nava — Yea
Skinner — Yea
Swanson — Yea
Torlakson — Yea
Torrico — Yea
Fletcher — Not Voting
Gaines — Not Voting
John — Not Voting
A. — Not Voting
Perez — Not Voting
Audra — Not Voting
Fuller — Not Voting
Gilmore — Not Voting
Jeffries — Not Voting
Logue — Not Voting
Mendoza — Not Voting
Nestande — Not Voting
Norby — Not Voting
Silva — Not Voting
Tran — Not Voting
Villines — Not Voting
Adams — Not Voting
Ammiano — Yea
Beall — Yea
Block — Yea
Blumenfield — Yea
Bradford — Yea
Brownley — Not Voting
Buchanan — Yea
Harkey — Not Voting
Hayashi — Yea
Huber — Yea
Knight — Not Voting
Ma — Yea
Miller — Not Voting
Monning — Yea
Nielsen — Not Voting
Ruskin — Yea
Smyth — Not Voting
Solorio — Yea
Torres — Yea
Arambula, Joaquin Democratic Yea
Caballero, Anna M. Democratic Yea
Calderon, Lisa Democratic Yea
Fong, Mike Democratic Yea
Lowenthal, Josh Democratic Yea
Jones, Brian W. Republican Yea
Niello, Roger W. Republican Not Voting
Strickland, Tony Republican Not Voting

Official roll call →

Subjects

taxation
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Frequently asked questions

What does AB 8 do?
(1) The Personal Income Tax Law and the Corporation Tax Law impose taxes on, or measured by, income. Existing law allows a tax return or return information filed under those laws to be disclosed in a judicial or administrative proceeding pertaining to tax administration under certain circumstances. Existing law requires every board, as defined under the Business and Professions Code, and the Department of Insurance to, upon request of the Franchise Tax Board, furnish to the Franchise Tax Board certain information with respect to every licensee. This bill would require a state governmental licensing entity, as defined, issuing professional or occupational licenses, certificates, registrations, or permits to provide to the Franchise Tax Board the name and social security number or federal taxpayer identification number of each individual licensee of that entity. The bill would require the Franchise Tax Board, if an individual licensee fails to pay taxes for which a notice of state tax lien has been recorded, as specified, to send a notice of suspension to the licensee. The bill would provide that the license of a licensee who fails to satisfy the unpaid taxes by a certain date shall be automatically suspended, except as specified, and would require the Franchise Tax Board to mail a notice of suspension to the applicable state governmental licensing entity and to the licensee, and would provide that the suspension be canceled upon compliance with the tax obligation. The bill would require the Franchise Tax Board to meet certain requirements and would make related changes. (2) The Sales and Use Tax Law imposes a tax on retailers measured by the gross receipts from the sale of tangible personal property sold at retail in this state, or on the storage, use, or other consumption in this state of tangible personal property purchased from a retailer for storage, use or other consumption in this state, measured by sales price. That law defines a "retailer engaged in business in this state" to include retailers that engage in specified activities in this state and requires every retailer engaged in business in this state and making sales of tangible personal property for storage, use, or other consumption in this state to register with the State Board of Equalization and to collect the tax from the purchaser and remit it to the board. This bill would include in the definition of a "retailer engaged in business in this state" any retailer entering into agreements under which a person in this state, for a commission or other consideration, directly or indirectly refers potential purchasers, whether by a link or an Internet Web site or otherwise, to the retailer, provided the total cumulative sales price from all sales by the retailer to purchasers in this state that are referred pursuant to these agreements is in excess of $10,000 within the preceding 12 months, except as specified. (3) The Franchise Tax Board administers the Personal Income Tax Law and the Corporation Tax Law. Existing law authorizes persons that are required to withhold taxes from recipients of income to require the recipients of the income to provide that person with the recipient's name and address. This bill would require the recipient of income to also provide the person paying the income with the recipient's social security number or other taxpayer identification number if requested by the person paying the income. (4) Existing laws require the Franchise Tax Board to administer specified taxes and collect those taxes from delinquent tax debtors. This bill would require the board, in coordination with financial institutions doing business in this state, to operate a Financial Institution Record Match System utilizing automated data exchanges to the maximum extent feasible in order to allow the board to match its list of delinquent tax debtors with the lists provided by the financial institutions. The bill would authorize the board to disclose specified taxpayer information for purposes of data matching, to institute civil proceedings to enforce specified provisions of the bill, and would impose specified penalties on financial institutions for failure to provide records in connection with the match system, as provided. This bill would provide that the specified use of certain data is a misdemeanor. (5) Existing law imposes various taxes and fees, and certain penalties in connection with tax avoidance and abusive tax shelters, including reportable transactions. This bill would expand the definition of reportable transactions to include abusive tax avoidance transactions, as defined, and transactions of interest, as defined. This bill would also make technical, nonsubstantive changes to conform to this reference. (6) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. (7) The California Constitution authorizes the Governor to declare a fiscal emergency and to call the Legislature into special session for that purpose. The Governor issued a proclamation declaring a fiscal emergency, and calling a special session for this purpose, on January 8, 2010. This bill would state that it addresses the fiscal emergency declared by the Governor by proclamation issued on January 8, 2010, pursuant to the California Constitution.
Who sponsors AB 8?
AB 8 is sponsored by Committee on Budget.
What is the current status of AB 8?
This bill died with 2009-2010, 8th Special Session. It reached “Passed Assembly” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track AB 8?
Track AB 8 free on One Click Politics — get push/email alerts when it moves.

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