Bill Text: CA SB516 | 2023-2024 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Health care coverage: prior authorization.

Spectrum: Partisan Bill (Democrat 5-0)

Status: (Engrossed) 2023-09-14 - Re-referred to Com. on APPR. pursuant to Assembly Rule 96. [SB516 Detail]

Download: California-2023-SB516-Amended.html

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Amended  IN  Senate  April 10, 2023

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Senate Bill

No. 516

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Introduced by Senator Skinner

February 14, 2023

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An act to amend Section Sections 12419.5 and 12419.8 of the Government Code, and to amend Sections 19008, 19280, and 21015.5 of, and to add Section 21018.5 to, the Revenue and Taxation Code, relating to taxation.

LEGISLATIVE COUNSEL'S DIGEST

SB 516, as amended, Skinner. Franchise Tax Board Debtor Bill of Rights.

(1) Existing law authorizes the Controller to offset any amount due to a state agency from a person or entity against any amount owing to that person or entity by a state agency, including any tax refund, except as specified.

This bill would authorize a person or entity to file a claim with the Controller for any amount erroneously offset under the above-described provisions. The bill would require the Controller to provide the person or entity with the contact information of the state agency that requested the offset when the claim is filed and cease the offset until the claim is resolved. The bill would require the Controller to refund any amount erroneously offset as expeditiously as possible, but within one year of the filing of a claim.

(1)

(2) Existing law authorizes the Controller to offset any amount due to a city, county, or special district from a person or entity against any amount owed a owing to that person or entity by a state agency at the request of the city, county, or special district, as specified.

This bill would prohibit a city, county, or special district the above-described local agencies from sending a bill for any amount due that the city, county, or special district local agency has submitted an offset request to the Controller. The bill would require the local agencies to relinquish all rights to collection unless or until the local agency withdraws the request for offset. The bill would require the Controller, when satisfying an offset request pursuant to these provisions, to give the person or entity owed an amount by a state agency a receipt, on a monthly basis, specifying from whom the offset was collected with a receipt with specified information, including the offset amount, and the remaining amount due a city, county, or special district. to the local agency. The bill would authorize a person or entity to file a claim with the Controller for reimbursement of any amount erroneously or illegally offset and require the Controller to refund any amount erroneously or illegally offset within one year of the filing. offset. The bill would require the Controller to provide the person or entity with the contact information of the local agency that requested the offset when the claim is filed and cease the offset until the claim is resolved. The bill would require the Controller to refund any amount erroneously offset.

(2)

(3) Existing law authorizes the Franchise Tax Board to allow a taxpayer to enter into an installment payment agreement to make full or partial payment of taxes due, as specified. Under existing law, except in specified circumstances, an installment agreement under these provisions is not considered null and void, or otherwise terminated, unless a specified notice of termination is provided to the taxpayer.

This bill would additionally require the Franchise Tax Board to authorize a taxpayer to submit an offer for an installment agreement online or by mail or telephone. The bill would prohibit the terms of the installment agreement to be less favorable because of the method the taxpayer chose to make the offer. The bill would also require the Franchise Tax Board, before terminating an installment payment agreement with a taxpayer for failure to comply fully with the terms of the installment agreement, to give the taxpayer a reasonable opportunity at least 60 days to cure the failure. The bill would also require the Franchise Tax Board to authorize a taxpayer to submit an offer for an installment agreement online or by telephone.

(3)

(4) Existing law authorizes a juvenile or superior court, county, state, or the State Bar to refer any fine, monetary sanction, state or local penalty, bail, forfeiture, restitution fine, restitution order, or any other amount to the Franchise Tax Board for collection under guidelines prescribed by the Franchise Tax Board, as specified.

Under existing law, upon expiration of 10 years after the date of entry of a money judgment or a judgment for possession or sale of property, the judgment may not be enforced, any enforcement procedures must cease, and any lien created by an enforcement procedure pursuant to the judgment is extinguished.

This bill would prohibit a juvenile or superior court, county, state, or the State Bar require the above-described entities to give a specified notice before referring the above-described amounts to the Franchise Tax Board. The bill would prohibit the entities from referring any judgment for a fine, monetary sanction, state or local penalty, bail, forfeiture, restitution fine, restitution order, or any other amount to the Franchise Tax Board that has not been imposed within the previous 15 years or is unenforceable pursuant to the above-described provisions relating to the enforcement of a judgment, unless renewed. The bill would prohibit a juvenile or superior court, county, state, or the State Bar the entities from referring any renewed judgment to the Franchise Tax Board after 5 years from the date of the filing of the application for renewal. The bill would require the entities to relinquish all rights to collect the referred amounts unless the entities withdraw the referral.

(4)

(5) Existing law requires the Franchise Tax Board to provide notice prior to before levying any property or property right. for unpaid taxes, as specified. Existing law requires that the notice include, among other information, the amount of unpaid tax and the proposed action or actions that may be taken by the Franchise Tax Board and the rights of the person with respect to the action or actions.

This bill would expand the above-described notice requirement to unpaid fees. The bill would require the Franchise Tax Board, when providing the above-described notice, to additionally specify the source of the unpaid tax, tax or fee, the type of money or property exempt from any levy, as specified, requirements and procedures to enter into installment agreements, and legal requirements and procedures to release a levy on money or property that is exempt from any levy.

(5) Existing law authorizes a person to file a claim with the Franchise Tax Board for reimbursement of charges or fees imposed on the person by an unrelated business entity as the direct result of an erroneous levy, erroneous process action, or erroneous collection action by the board, as specified. Existing law authorizes the Franchise Tax Board to grant the claim under specified conditions.

This bill would authorize a person to file a claim with the Franchise Tax Board for a refund of any amount, or property that has been erroneously or illegally levied or collected by the board. The bill would require the Franchise Tax Board to refund any amount or property erroneously or illegally levied or collected within one year of the filing.

Digest Key

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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Bill Text

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

SECTION 1.

 This act shall be known and may be cited as the Franchise Tax Board Debtor Bill of Rights.

SEC. 2.

 Section 12419.5 of the Government Code is amended to read:

12419.5.

 (a) The Controller may, in the Controller’s discretion, offset any amount due a state agency from a person or entity, against any amount owing that person or entity by any state agency. The Controller may deduct from the claim, and draw the Controller’s warrants for the amounts offset in favor of the respective state agencies to which due, and, for any balance, in favor of the claimant. Whenever insufficient to offset all amounts due state agencies, the amount available shall be applied in the manner as the Controller, in the Controller’s discretion, shall determine. If, in the discretion of the Controller, the person or entity refuses or neglects to file a claim within a reasonable time, the head of the state agency owing the amount shall file the claim on behalf of that person or entity. If approved by the Controller, the claim shall have the same force and effect as though filed by that person or entity. The amount due any person or entity from the state or any agency thereof is the net amount otherwise owing that person or entity after any offset as provided in this section.

For

(b) For purposes of this section, an amount owing to a person or entity by any state agency shall include any tax refund.

This

(c) This section shall not apply to payment of online game prizes of ninety-nine dollars ($99) or lower by California State Lottery Retailers pursuant to subdivision (a) of former Section 8880.32.

(d) (1) A person or entity may file a claim with the Controller for any amount erroneously offset pursuant to this section.

(2) The Controller shall maintain the contact information of the state agency that requested an offset.

(3) The Controller shall provide a person or entity filing a claim pursuant to paragraph (1) the information described in paragraph (2), and the Controller shall cease any future offset that is the subject of the claim until the claim is resolved.

(4) The Controller shall refund any amount erroneously offset pursuant to this section as expeditiously as possible, but within one year of the filing of the claim.

SEC. 2.SEC. 3.

 Section 12419.8 of the Government Code is amended to read:

12419.8.

 (a) The Controller may, in the Controller’s discretion, offset any amount due a city, county, or special district from a person or entity pursuant to paragraph (1), (2), or (4) of subdivision (f), and shall, at the request of the city, county, or special district, offset any amount due a city, county, or special district from a person or entity pursuant to paragraph (3) of subdivision (f), against any amount owing the person or entity by a state agency on a claim for a refund from the Franchise Tax Board under the Personal Income Tax Law or the Bank and Corporation Tax Law, a claim for refund from the State Board of Equalization under the Sales and Use Tax Law, from winnings in the California State Lottery, or a claim filed by the owner, as described in subdivision (d) of Section 1540 of the Code of Civil Procedure, for payment of money from unclaimed property held by the state. Standards and procedures for submission of requests for offsets shall be as prescribed by the Controller. Whenever insufficient funds are available to satisfy an offset request, the Controller, after first applying the amounts available to any amount due a state agency, may allocate the balance among any other requests for offset.

(b) The Controller shall deduct and retain from any amount offset in favor of a city, county, or special district an amount sufficient to reimburse the Controller, the Franchise Tax Board, the State Board of Equalization, or the California State Lottery for their administrative costs of processing the offset payment.

(c) A city, county, or special district shall not send a bill for any amount due that the city, county, or special district has submitted an offset request pursuant to subdivision (a). (a) and shall relinquish all right to collection unless or until it has withdrawn the request for offset.

(d) When the Controller satisfies an offset request pursuant to subdivision (a), the Controller shall give the person or entity owed an amount by a state agency a receipt, on a monthly basis, specifying the offset amount and the remaining amount due a city, county, or special district. from whom the offset was collected a receipt specifying all of the following:

(1) The offset amount.

(2) The name of the city, county, or special district that requested the offset.

(3) The remaining amount due to the city, county, or special district.

(e) (1) A person or entity may file a claim with the Controller for reimbursement of any amount erroneously or illegally offset. The Controller shall refund any amount erroneously or illegally offset within one year of filing of a claim with the Controller. offset pursuant to this section.

(2) The Controller shall maintain the contact information of the city, county, or special district that requested an offset.

(3) The Controller shall provide a person filing a claim pursuant to paragraph (1) the information described in paragraph (2), and the Controller shall cease any future offset that is the subject of the claim until the claim is resolved.

(4) The Controller shall refund any amount erroneously offset.

(f) This section shall apply only to any of the following situations:

(1) Where the amount has been reduced to a judgment.

(2) Where the amount is contained in an order of a court.

(3) Where the amount is from a bench warrant for payment of any fine, penalty, or assessment.

(4) Where the amount is delinquent unsecured property taxes on which a certificate lien has been filed for record in the office of the county recorder pursuant to Section 2191.3 of the Revenue and Taxation Code.

(g) For purposes of paragraph (4) of subdivision (f):

(1) Upon the tax collector’s request for taxpayer identification numbers required by the Controller’s procedures, the tax collector shall immediately notify the appropriate assessee, by registered or certified mail, that the request has been made for the purpose of intercepting refunds from the state government due the taxpayer, in order to offset the delinquent property tax obligation. The letter shall state that if the assessee does not pay the outstanding tax amount to the tax collector within 20 days, the required taxpayer identification number will be so provided.

(2) The tax collector shall not be named in any action that may be brought as a result of compliance with this subdivision.

SEC. 3.SEC. 4.

 Section 19008 of the Revenue and Taxation Code is amended to read:

19008.

 (a) (1) The Franchise Tax Board may, in cases of financial hardship, as determined by the Franchise Tax Board, allow a taxpayer to enter into installment payment agreements with the Franchise Tax Board to make full or partial payment of taxes due, plus applicable interest and penalties over the life of the installment period. Failure by a taxpayer to comply fully with the terms of the installment payment agreement shall render the agreement null and void, unless the Franchise Tax Board determines that the failure was due to a reasonable cause, and the total amount of tax, interest, and all penalties shall be immediately due and payable.

(2) (A) The Franchise Tax Board shall allow a taxpayer to submit an offer for an installment agreement online or by mail or telephone.

(B) The terms of the installment agreement shall not be less favorable because of the method chosen by the taxpayer to submit an offer pursuant to subparagraph (A).

(b) In the case of a liability for tax of an individual under Part 10 (commencing with Section 17001) or this part, the Franchise Tax Board shall enter into an agreement to accept the full payment of the tax in installments if, as of the date the individual offers to enter into the agreement, all of the following apply:

(1) The aggregate amount of the liability (determined without regard to interest, penalties, additions to the tax and additional amounts) does not exceed ten thousand dollars ($10,000).

(2) The taxpayer (and, if the liability relates to a joint return, the taxpayer’s spouse) has not during any of the preceding five taxable years done any of the following:

(A) Failed to file any return of tax imposed under Part 10 (commencing with Section 17001) or this part.

(B) Failed to pay any tax required to be shown on the return.

(C) Entered into an installment agreement under this section for payment of any tax imposed by Part 10 (commencing with Section 17001) or this part.

(3) The Franchise Tax Board determines that the taxpayer is financially unable to pay the liability in full when due, and the taxpayer submits any information as the Franchise Tax Board may require to make this determination.

(4) The agreement requires full payment of the liability within three years.

(5) The taxpayer agrees to comply with the provisions of this part and Part 10 (commencing with Section 17001) for the period the agreement is in effect.

(c) Except in any case where the Franchise Tax Board finds collection of the tax to which an installment payment agreement relates to be in jeopardy, or there is a mutual consent to terminate, alter, or modify the agreement, the agreement shall not be considered null and void, or otherwise terminated, unless all of the following occur:

(1) A notice of termination is provided to the taxpayer not later than 30 days before the date of termination.

(2) The notice includes an explanation of why the Franchise Tax Board intends to terminate the agreement.

(3) If the taxpayer has failed to comply fully with the terms of the installment payment agreement, the taxpayer has been given reasonable opportunity at least 60 calendar days to cure the failure.

(d) No levy may be issued on the property or rights to property of any person with respect to any unpaid tax: tax, including, but not limited to, an offset as described in Section 12419.5 or 12419.8 of the Government Code, or the amount referred to the Franchise Tax Board pursuant to Section 19280:

(1) During the period that an offer by the taxpayer for an installment agreement under this section for payment of the unpaid tax is pending with the Franchise Tax Board.

(2) If the offer is rejected by the Franchise Tax Board, during the 30 days thereafter and, if a request for review of the rejection is filed within the 30 days, during the period that the review is pending.

(3) During the period that the installment agreement for payment of the unpaid tax is in effect.

(4) If the agreement is terminated by the Franchise Tax Board, during the 30 days thereafter (and, if a request for review of the termination is filed within the 30 days, during the period that the review is pending).

(5) This subdivision shall not apply with respect to any of the following:

(A) Any unpaid tax if either of the following occurs:

(i) The taxpayer files a written notice with the Franchise Tax Board that waives the restriction imposed by this subdivision on levy with respect to the tax.

(ii) The Franchise Tax Board finds that the collection of that tax is in jeopardy.

(B) Any levy that was first issued before the date that the applicable proceeding under this subdivision commenced.

(C) At the discretion of the Franchise Tax Board, any unpaid tax for which the taxpayer makes an offer of an installment agreement subsequent to a rejection of an offer of an installment agreement with respect to that unpaid tax (or to any review thereof).

(D) The period of limitation under Section 19371 shall be suspended for the period during which the Franchise Tax Board is prohibited under this subdivision from making a levy.

(e) The Taxpayers’ Rights Advocate shall establish procedures for an independent departmental administrative review for the rejection of the offer of an installment payment and for installment payment agreements that are rendered null and void, or otherwise terminated under this section, for taxpayers that request that review. This administrative review shall not be subject to Chapter 4.5 (commencing with Section 11400) of Part 1 of Division 3 of the Government Code. Unless review is requested by the taxpayer within 30 days of the date of rejection of the offer of an installment agreement or termination of the installment agreement, this administrative review shall not stay collection of the tax to which the installment payment agreement relates.

(f) In the case of an agreement entered into by the Franchise Tax Board under paragraph (1) of subdivision (a) for partial payment of a tax liability, the Franchise Tax Board shall review the agreement at least once every two years.

(g) (1) In the case of any taxpayer that is making payments to the Franchise Tax Board under an informal payment arrangement that was in existence prior to the effective date of the act adding this subdivision, that informal payment arrangement, for purposes of this section, shall be treated as an installment payment agreement that was entered into on the later of the following:

(A) January 1, 2005.

(B) The date on which the arrangement was established by the Franchise Tax Board.

(2) In any case where the date determined under the rules of paragraph (1) is a date prior to February 1, 2005, the amount due under the informal payment arrangement as of February 1, 2005, shall be treated as an installment payment agreement amount as of the start of the amnesty program within the meaning of Section 19738.

(3) Section 19591 does not apply to either of the following:

(A) Informal payment arrangements treated as installment payment agreements under paragraph (1).

(B) Installment payment agreements authorized by the amendments made by the act adding this subdivision that were entered into prior to July 1, 2005, or the effective date of the act adding this subdivision, whichever occurs later.

SEC. 4.SEC. 5.

 Section 19280 of the Revenue and Taxation Code is amended to read:

19280.

 (a) (1) (A) Fines, monetary sanctions, state or local penalties, bail, forfeitures, restitution fines, restitution orders, or any other amounts imposed by a juvenile or superior court of the State of California or the Supreme Court of the State of California upon a person or any other entity, or any payment from the State Bar of California’s Client Security Fund that is part of a final determination from the Client Security Fund, that are due and payable in an amount totaling no less than one hundred dollars ($100), in the aggregate, for criminal offenses, including all offenses involving a violation of the Vehicle Code, any amounts due pursuant to Section 903.1 of the Welfare and Institutions Code, and any amounts due pursuant to Section 6086.10, 6086.13, or 6140.5 of the Business and Professions Code may, no sooner than 90 days after payment of that amount becomes delinquent, be referred by the juvenile or superior court, the county, the state, or the State Bar to the Franchise Tax Board for collection under guidelines prescribed by the Franchise Tax Board. Except as specified in subparagraph (B), (C), the Department of Corrections and Rehabilitation or county may refer a restitution order to the Franchise Tax Board, in accordance with subparagraph (B) of paragraph (2), for any person subject to the restitution order who is or has been under the jurisdiction of the Department of Corrections and Rehabilitation or the county.

(B) A juvenile or superior court, county, state, or the State Bar shall not refer an amount pursuant to subparagraph (A) unless written notice is provided to the debtor specifying all of the following:

(i) The amount will be referred to the Franchise Tax Board for collection that may include bank levy, wage garnishment, tax refund offsets, and unclaimed property or lottery offsets.

(ii) The full accounting of the amount referred, including, but not limited to, the case number, and date the amount was imposed.

(iii) Information about resolving the amount before referral, including, but not limited to, a payment plan or the procedure to pay the amount.

(B)

(C) The Department of Corrections and Rehabilitation or the county shall not refer a restitution order to the Franchise Tax Board if a county agency has been designated by the county board of supervisors to collect restitution from individuals who (i) are serving are either of the following:

(i) Serving a sentence in a county jail pursuant to subdivision (h) of Section 1170 of the Penal Code, (ii) are on Code.

(ii) On mandatory supervision pursuant to paragraph (5) of subdivision (h) of Section 1170 of the Penal Code, or (iii) are on Code.

(iii) On postrelease community supervision pursuant to Title 2.05 (commencing with Section 3450) of Part 3 of the Penal Code, the designated county agency has an existing collection system and objects to collection by the Franchise Tax Board, and the designated county agency informs the Department of Corrections and Rehabilitation or the county that it will collect the restitution order.

(C)

(D) If the crime victim entitled to restitution in the order notifies either the Department of Corrections and Rehabilitation or the designated county agency with regard to their preference of a collecting agency, that preference shall be honored and the collection shall be performed in accordance with the preference of the victim.

(E) A juvenile or superior court, county, state, or the State Bar shall not refer an amount pursuant to subparagraph (A) to the Franchise Tax Board that has not been imposed within the previous 15 years.

(D)

(F) A juvenile or superior court, county, state, or the State Bar shall not refer any judgment for a fine, monetary sanction, state or local penalty, bail, forfeiture, restitution fine, restitution order, or any other an amount to the Franchise Tax Board pursuant to subparagraph (A) that is unenforceable pursuant to Section 683.020 of the Code of Civil Procedure, unless renewed. A juvenile or superior court, county, state, or the State Bar shall not refer any renewed judgment to the Franchise Tax Board after five years from the date of the filing of the application for renewal.

(2) For purposes of this subdivision:

(A) The amounts referred by the juvenile or superior court, the county, the state, or the State Bar under this section may include an administrative fee and any amounts that a government entity may add to the court-imposed obligation as a result of the underlying offense, trial, or conviction. For purposes of this article, those amounts shall be deemed to be imposed by the court.

(B) Restitution orders may be referred to the Franchise Tax Board only by a government entity, as agreed upon by the Franchise Tax Board, provided that all of the following apply:

(i) The government entity has the authority to collect on behalf of the state or the victim.

(ii) The government entity shall be responsible for distributing the restitution order collections, as appropriate.

(iii) The government entity shall ensure, in making the referrals and distributions, that it coordinates with any other related collection activities that may occur by superior courts, counties, or other state agencies.

(iv) The government entity shall ensure compliance with laws relating to the reimbursement of the Restitution Fund.

(C) The Franchise Tax Board shall establish criteria for referral that shall include setting forth a minimum dollar amount subject to referral and collection.

(b) The Franchise Tax Board, in conjunction with the Judicial Council, shall seek whatever additional resources are needed to accept referrals from all 58 counties or superior courts.

(c) Upon written notice to the debtor from the Franchise Tax Board, any amount referred to the Franchise Tax Board under subdivision (a) and any interest thereon, including any interest on the amount referred under subdivision (a) that accrued prior to the date of referral, shall be treated as final and due and payable to the State of California, and shall be collected from the debtor by the Franchise Tax Board in any manner authorized under the law for collection of a delinquent personal income tax liability, including, but not limited to, issuance of an order and levy under Article 4 (commencing with Section 706.070) of Chapter 5 of Division 2 of Title 9 of Part 2 of the Code of Civil Procedure in the manner provided for earnings withholding orders for taxes.

(d) (1) Part 10 (commencing with Section 17001), this part, Part 10.7 (commencing with Section 21001), and Part 11 (commencing with Section 23001) shall apply to amounts referred under this article in the same manner and with the same force and effect and to the full extent as if the language of those laws had been incorporated in full into this article, except to the extent that any provision is either inconsistent with this article or is not relevant to this article.

(2) Any information, information sources, or enforcement remedies and capabilities available to the court or the state referring to the amount due described in subdivision (a) shall be available to the Franchise Tax Board to be used in conjunction with, or independent of, the information, information sources, or remedies and capabilities available to the Franchise Tax Board for purposes of administering Part 10 (commencing with Section 17001), this part, Part 10.7 (commencing with Section 21001), or Part 11 (commencing with Section 23001).

(e) The activities required to implement and administer this part shall not interfere with the primary mission of the Franchise Tax Board to administer Part 10 (commencing with Section 17001) and Part 11 (commencing with Section 23001).

(f) For amounts referred for collection under subdivision (a), interest shall accrue at the greater of the rate applicable to the amount due being collected or the rate provided under Section 19521. When notice of the amount due includes interest and is mailed to the debtor and the amount is paid within 15 days after the date of notice, interest shall not be imposed for the period after the date of notice.

(g) A collection under this article is not a payment of income taxes imposed under Part 10 (commencing with Section 17001) or Part 11 (commencing with Section 23001).

(h) (1) Both of the following shall apply to any levy or order issued on or after January 1, 2022, under subdivision (c):

(A) The maximum amount of disposable earnings of a debtor for any workweek that is subject to collection shall not exceed the amount specified in Section 706.050 of the Code of Civil Procedure.

(B) The minimum basic standard of care amount specified in subdivision (a) of Section 704.220 of the Code of Civil Procedure shall not be subject to collection.

(2) This subdivision shall not apply to restitution orders or restitution fines.

(i) The juvenile or superior court, the county, the state, or the State Bar shall relinquish all rights to collect the amount referred to the Franchise Tax Board pursuant to subdivision (a), unless or until the juvenile or superior court, the county, the state, or the State Bar has withdrawn the referral.

SEC. 5.SEC. 6.

 Section 21015.5 of the Revenue and Taxation Code is amended to read:

21015.5.

 (a) (1) No levy may be made on any property or property right of any person unless the board has notified the person in writing of his or her the person’s rights as described in subparagraph (D) of paragraph (3) before the levy is made. Except as provided in subdivision (f), the notice shall be required only once for the taxable period to which the unpaid tax or fee specified in subparagraph (A) of paragraph (3) relates. The notice shall not be required if the unpaid tax or fee for which notice would otherwise be required under this paragraph is consolidated for collection purposes with a preexisting unpaid tax or fee for which notice has been given under this paragraph.

(2) The notice required by paragraph (1) shall be made by first-class mail to the address of record not less than 30 days before the day of the first levy with respect to the amount of the unpaid tax or fee for the taxable or fee period. Notice under paragraph (1) is not required if previous mail to the same address was returned undelivered with no forwarding address.

(3) The notice required under paragraph (1) shall specify, in simple and nontechnical terms, all of the following:

(A) The amount of unpaid tax. tax or fee.

(B) The source of the unpaid tax. tax or fee.

(C) A telephone number to call in the event of any questions.

(D) The right of the person to request a review during the 30-day period described in paragraph (2).

(E) Type A disclosure of the type of money or property exempt from any levy. levy, including, but not limited to, the exemptions provided in Article 3 (commencing with Section 704.010) of Chapter 4 of Division 2 of Title 9 of Part 2 of the Code of Civil Procedure.

(F) The proposed action or actions that may be taken by the Franchise Tax Board and the rights of the person with respect to the action or actions, including a brief statement that sets forth all of the following:

(i) The provisions of California law relating to levy and sale of property.

(ii) The procedures applicable to the levy and sale of property under California law.

(iii) The independent departmental administrative review available to the taxpayers with respect to the levy and sale and the procedures to obtain that review.

(iv) The alternatives available to taxpayers or fee payers that could prevent levy on property, including installment agreements under Section 19008.

(v) Requirements and procedures to enter into installment agreements under Section 19008.

(vi) California legal requirements and procedures with respect to the release of levy, including legal requirements and procedures to release a levy on money or property that is exempt from any levy.

(b) (1) The Taxpayers’ Rights Advocate shall establish procedures for an independent departmental administrative review for taxpayers who request review under subparagraph (D) of paragraph (3) of subdivision (a).

(2) A person shall be entitled to only one review under this section with respect to the taxable or fee period to which the unpaid tax or fee specified in subparagraph (A) of paragraph (3) of subdivision (a) relates.

(3) An independent departmental administrative review under this subdivision shall be conducted by an officer or employee, or officers or employees, who have had no prior involvement with respect to the unpaid tax or fee specified in subparagraph (A) of paragraph (3) of subdivision (a) before the first review under this section or Section 19225. A taxpayer or fee payer may waive the requirement of this paragraph. Administrative review under this subdivision is not subject to Chapter 4.5 (commencing with Section 11400) of Part 1 of Division 3 of Title 2 the Government Code.

(c) (1) The person or persons conducting the independent departmental administrative review shall obtain verification that the requirements of any applicable law or administrative procedures have been met by the board.

(2) The taxpayer or fee payer may raise during the review any relevant issue relating to the unpaid tax tax, fee, or the lien, including any of the following:

(A) Appropriate spousal defenses.

(B) Challenges to the appropriateness of collection actions.

(C) Offers of collection alternatives, that may include the posting of a bond, the substitution of other assets, an installment agreement, or an offer in compromise.

(3) The determination of the person or persons conducting the review under this subdivision shall take into consideration all of the following:

(A) The verification presented under paragraph (1).

(B) The issues raised under paragraph (2).

(C) Whether any proposed collection action balances the need for the efficient collection of taxes or fees with the legitimate concern of the person that any collection action not be more intrusive than necessary.

(4) An issue may not be raised during the review if:

(A) The issue was raised and considered at a previous review under this section or in any other administrative or judicial proceeding.

(B) The person seeking to raise the issue participated meaningfully in the review or proceeding.

(C) The issue meets the requirements of clause (i) or (ii) of Section 6702(b)(2)(A) of the Internal Revenue Code, as modified by Section 19179.

This paragraph does not apply to any issue with respect to a change in circumstances of that person that affects the determination.

(d) If review is requested under subparagraph (D) of paragraph (3) of subdivision (a), the levy actions that are the subject of the requested review shall be suspended for the period during which the review is pending. In no event shall any period expire before the 15th day after the day upon which there is a final determination in the review.

(e) This section does not apply if the board has made a finding under Section 19081 or Section 19082 that the collection of tax is in jeopardy except that the taxpayer shall be given the opportunity for the review described in this section within a reasonable period of time after the levy.

(f) If the board holds in abeyance the collection of a liability imposed under Part 10 (commencing with Section 17001) or Part 10.2 (commencing with Section 18401), that is final and otherwise due and payable, for a period in excess of six months from the date the hold is first placed on the account, the board shall thereafter mail to the taxpayer a notice prior to issuing a levy or filing or recording a notice of state tax lien.

(g) This section is operative for collection actions initiated after the date which is 180 days after the effective date of the act adding this section.

(h) Notwithstanding any other provision of this section, if the board determines that any portion of a request for review under this section meets the requirements of clause (i) or (ii) of Section 6702(b)(2)(A) of the Internal Revenue Code, as modified by Section 19179, then the Franchise Tax Board may treat that portion as if it were never submitted and that portion shall not be subject to any further administrative or judicial review.

SEC. 6.SEC. 7.

 Section 21018.5 is added to the Revenue and Taxation Code, to read:

21018.5.

 A person may file a claim with the board for a refund of any amount, or for property that has been erroneously or illegally levied or collected by the board. The board shall refund any amount or property erroneously or illegally levied or collected within one year of filing of a claim with the board.