Amended in Assembly March 26, 2015

California Legislature—2015–16 Regular Session

Assembly BillNo. 756


Introduced by Assembly Member Chang

February 25, 2015


begin deleteAn act relating to state government. end deletebegin insertAn act to add Section 42 to the Revenue and Taxation Code, relating to small businesses.end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 756, as amended, Chang. Small businesses: begin deletestate agencies:end delete civil fines andbegin delete penaltiesend deletebegin insert penalties. penalties: waiverend insert.

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Existing law imposes various taxes and fees that are administered by the State Board of Equalization, the Franchise Tax Board, and the Employment Development Department. Existing law authorizes these state agencies to impose fines and penalties for violations of those laws imposing the tax or fee. Under existing law, if the Director of Employment Development finds that any employer, in submitting facts concerning the termination of a specified claimant’s employment concerning unemployment compensation, among other things, willfully makes a false statement or representation, the director is required to assess a penalty against the employer of that claimant in a specified amount.

end insert
begin insert

This bill would require the State Board of Equalization, the Franchise Tax Board, and the Employment Development Department to waive any fine or penalty for violations of the laws that impose a tax or fee, assessed against a small business, as defined, within its first 120 days of operation if certain requirements are met.

end insert
begin delete

Generally, existing law authorizes state agencies to assess administrative fines or recover civil penalties in enforcement actions against business establishments for violating various state laws. Existing law prohibits a state agency from imposing any civil fine on a small business, as defined, for a violation of an administrative rule or regulation or a noncriminal statute as a result of a Year 2000 Problem, as defined, suffered by the small business if certain requirements are met.

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This bill would declare the intent of the Legislature to enact legislation that would authorize certain state agencies to waive penalties for small businesses within their first 120 days of operation if certain requirements are met.

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Vote: majority. Appropriation: no. Fiscal committee: begin deleteno end deletebegin insertyesend insert. State-mandated local program: no.

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

P2    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 42 is added to the end insertbegin insertRevenue and Taxation
2Code
end insert
begin insert, to read:end insert

begin insert
3

begin insert42.end insert  

(a) The board, Franchise Tax Board, and the Employment
4Development Department, with respect to the laws administered
5by them that impose a tax or fee, shall waive any fine or penalty
6for violations of those laws assessed against a small business
7within its first 120 days of operation if the violation does not create
8a threat to health or safety, does not violate any provision of the
9Labor Code, and was not done intentionally.

10(b) For the purposes of this section, a “small business” is a
11business with 100 or fewer employees.

end insert
begin delete
12

SECTION 1.  

It is the intent of the Legislature to enact
13legislation that would authorize certain state agencies to waive
14penalties for small businesses within their first 120 days of
15operation if the violation does not create a threat to health or safety,
16does not violate any provision of the Labor Code, and was not
17done intentionally.

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