SECTIONS 19290-19290.1 - California Statutes

REVENUE AND TAXATION CODE

SECTION 19290-19290.1

19290. (a) The Department of Industrial Relations shall enter into
an agreement with the Franchise Tax Board that transfers
responsibility from the department to the Franchise Tax Board for the
collection of delinquent fees, wages, penalties, and costs, and any
interest thereon, effective July 1, 1995. Under the agreement, the
Franchise Tax Board shall collect unsatisfied judgments that are
issued pursuant to Sections 98.2, 226.5, 1023, 1289, 2681, and 6650
of the Labor Code. The agreement shall also provide for the
collection of delinquent debts that result from a final determination
by the department after the exhaustion of appeal remedies pursuant
to Sections 98.3, 210, 1174.5, 1193.6, 1194, 1194.2, 1197.1, 1197.5,
1771, 1774, 3722, 7314, 7350, 7721, and 7904 of the Labor Code. The
agreement shall specify the terms under which fees, wages, penalties,
and costs, and any interest thereon, become subject to collection by
the Franchise Tax Board.
The agreement may also provide for reimbursement to the Franchise
Tax Board on the basis of a percentage of the amount of revenue
realized as a result of the Franchise Tax Board's services, provided
that the amount of any reimbursement shall not exceed the actual
costs of collection, including court costs and reasonable attorney's
fees. Wherever possible the collection costs shall be borne by the
judgment debtor. Any fee for the recovery of wages shall not be paid
by the workers. The department shall adopt rules and regulations to
provide for a reasonable fee to cover actual collection costs. The
Franchise Tax Board shall be entitled to court costs and reasonable
attorney's fees as a judgment creditor under subdivision (i) of
Section 98.2 of the Labor Code.
(b) Upon written notice to the obligor 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 and any fee imposed to cover collection costs as
provided under subdivision (a), shall be treated as final and due and
payable to the State of California, and shall be collected from the
obligor 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.
(c) (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 agency referring 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).
(d) 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).
(e) 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
obligor, 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.
(f) In no event shall a collection under this article be construed
as a payment of income taxes imposed under Part 10 (commencing with
Section 17001) or Part 11 (commencing with Section 23001).
(g) The amendments made by the act adding this subdivision are
operative for notices issued on or after January 1, 1998.

19290.1. (a) Except as otherwise provided by this section, Section
19290 shall apply to assessments and penalties that are referred to
the Franchise Tax Board for collection pursuant to Section 62.9 of
the Labor Code. These assessments and penalties shall be deemed for
this purpose to be delinquent debts. The collection agreement
described in Section 19290 may be amended to include these
assessments and penalties, or a separate agreement may be entered
into under that section to collect the assessments and penalties. All
payments collected by the Franchise Tax Board pursuant to this
section shall be deposited in the Cal-OSHA Targeted Inspection and
Consultation Fund.
(b) In the event that an employer, against whom assessments and
penalties as described in subdivision (a) have been levied, notifies
the Franchise Tax Board that there is a disagreement as to the amount
that is due and subject to collection, the Franchise Tax Board may
refer the employer to the Department of Industrial Relations, return
the account to the department, or rescind any collection action that
may have been taken by the board.
(c) The Franchise Tax Board shall provide the Department of
Industrial Relations with activity reports, no less frequently than
on a quarterly basis, identifying the total amount referred for
collection pursuant to Section 62.9 of the Labor Code, the amount
collected from each employer, and the board's actual costs of
collection. Upon appropriation by the Legislature, the board shall be
reimbursed from the Cal-OSHA Targeted Inspection and Consultation
Fund for its actual costs of collection.
(d) Notwithstanding any other provision of law, no interest shall
be charged on any assessment or penalty as described in subdivision
(a).