Bill Text: CA SR18 | 2015-2016 | Regular Session | Introduced
Bill Title: Relative to the Tax Recovery and Criminal Enforcement Task Force.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Failed) 2016-11-30 - From committee without further action. [SR18 Detail]
Download: California-2015-SR18-Introduced.html
BILL NUMBER: SR 18 INTRODUCED
BILL TEXT
INTRODUCED BY Senator Pan
MARCH 11, 2015
Relative to the Tax Recovery and Criminal Enforcement Task Force.
LEGISLATIVE COUNSEL'S DIGEST
HOUSE OR SENATE RESOLUTIONS DO NOT CONTAIN A DIGEST
WHEREAS, California's ranking as the eighth largest economy in the
world makes it a prime target for individuals and businesses that
conceal their illicit activities, evade their tax liabilities, and
gain an unfair advantage over law-abiding businesses by operating in
the "underground economy." Also known as the "informal economy,"
"shadow economy," or "cash economy," California's underground economy
is estimated to be as high as $140 billion annually; and
WHEREAS, California's underground economy steals revenues from the
state's coffers that provide public services and fund
infrastructure. California's citizens are further victimized by the
underground economy through false representations and inferior or
tainted products, layoffs, lost job opportunities, and diminished
employer market share; and
WHEREAS, California's tax agencies identified the need to improve
communications and collaboration among enforcement agencies to more
effectively combat the serious issue of the growing underground
economy in California. Using existing resources, the Department of
Justice, the Board of Equalization, the Franchise Tax Board, the
Department of Alcoholic Beverage Control, and the Employment
Development Department entered into an agreement that resulted in the
creation of the Tax Recovery and Criminal Enforcement (TRaCE) Task
Force; and
WHEREAS, As criminal investigations of underground economic
activities often cross state borders, national borders, or both, the
Federal Bureau of Investigation and Homeland Security Investigations
joined the Task Force to facilitate criminal prosecutions, creating a
unique federal and state collaboration that leverages federal
enforcement; and
WHEREAS, The TRaCE Task Force has developed and implemented an
innovative central intake system for the public to report crimes
related to criminal tax evasion, human trafficking, counterfeiting
and piracy, and other crimes to collaboratively combat illegal
business activities that rob California of public funds and its
citizens of public services. The central intake system allows TRaCE
to electronically triage a multiagency criminal lead to collaborate
investigative resources in an efficient, expeditious manner; and
WHEREAS, The TRaCE Task Force encourages and facilitates
collaboration among state and federal agencies, labor organization,
local governments, and business groups to promote a unified front in
reducing the underground economy; provides for a quicker response to
organized efforts to defraud the state, consumers, and businesses;
reduces its prosecutorial costs by prosecuting cross-program
violations as one case to fully capture the severity of the crimes
and impose stiffer penalties on convicted violators; and helps to
improve the health of California's economy by combating organized
criminal activity while increasing California's tax revenue stream;
now, therefore, be it
Resolved by the Senate of the State of California, That the Tax
Recovery and Criminal Enforcement (TRaCE) Task Force is recognized
for its excellent public service in combating the underground economy
in California; and be it further
Resolved, That the Secretary of the Senate transmit copies of this
resolution to the author for appropriate distribution.
